New Delhi: India’s total exports of merchandise and services for April-June 2025 reached US$210.31 billion, up 5.94% from US$198.52 billion in April-June 2024, according to data released by the Ministry of Commerce and Industry today.
However, a trade deficit of US$20.31 billion, driven by heavy reliance on imports from China, signals challenges for India’s trade balance, despite growth in electronics and pharmaceuticals.
Merchandise exports for the quarter grew 1.92% to US$112.17 billion from US$110.06 billion, while services exports rose 10.93% to US$98.13 billion from US$88.46 billion. Non-petroleum exports, a measure of diversification, increased 5.97% to US$94.77 billion from US$89.42 billion, and non-petroleum, non-gems & jewellery exports rose 7.22% to US$88.10 billion from US$82.16 billion. In June 2025, total exports reached US$67.98 billion, up 6.50% from US$63.83 billion, with merchandise exports at US$35.14 billion (down 0.06% from US$35.16 billion) and services exports at US$32.84 billion (up 14.51% from US$28.67 billion). Total imports grew 4.38% to US$230.62 billion from US$220.94 billion, with June imports at US$71.50 billion, up 0.50% from US$71.14 billion. The June trade deficit narrowed to US$3.51 billion from US$7.30 billion, but the quarterly deficit widened to US$20.31 billion from US$22.42 billion, driven by a merchandise deficit of US$67.26 billion, up from US$62.10 billion, reflecting higher import growth.
Imports from China, India’s largest trading partner, rose 16.33% to US$56.29 billion in the first half of FY 2024-25, contributing to a US$49.38 billion trade deficit with China, 41% of India’s total deficit. Other import sources included Ireland (up 281.04%), the United Arab Emirates (28.73%), the US (11.68%), and Hong Kong (33.22%) for the quarter, with Ireland (265.82%), Hong Kong (23.09%), Singapore (18.16%), Thailand (25.68%), and China (2.48%) in June. Imports of pulses (-74.96%), newsprint (-61.66%), gold (-25.73%), transport equipment (-20.46%), and petroleum products (-8.37%) declined in June, but overall import growth outpaced exports, exacerbating the deficit.
Export growth was led by electronics, up 46.93% to US$4.15 billion from US$2.82 billion in June 2025, driven by smartphone and component demand. Drugs and pharmaceuticals grew 5.95% to US$2.62 billion from US$2.47 billion, engineering goods rose 1.35% to US$9.50 billion from US$9.38 billion, marine products increased 13.33% to US$0.63 billion from US$0.56 billion, and meat, dairy, and poultry products rose 19.70% to US$0.37 billion from US$0.31 billion. Other sectors with gains included tea (32.64%), jute manufacturing (23.44%), cereals (13.39%), cereal preparations (8.09%), fruits and vegetables (2.83%), plastic and linoleum (2.26%), carpets (2.04%), chemicals (1.65%), textiles (1.23%), minerals (0.86%), and rice (0.85%).
Export markets showed growth, with the United States up 22.18%, China 17.87%, and Kenya 69.83% for the quarter, followed by Germany (10.79%) and Australia (14.01%). In June, the US led with 23.53%, followed by China (17.18%), Kenya (76.2%), France (21.78%), and Brazil (23.02%). The services sector, contributing 45.78% of exports, remained strong, with a quarterly surplus of US$46.95 billion, up from US$39.68 billion. Non-petroleum, non-gems & jewellery exports in June rose to US$28.74 billion from US$27.43 billion, while imports were flat at US$36.57 billion. For the quarter, non-petroleum, non-gems & jewellery imports grew to US$117.02 billion from US$106.60 billion.
Despite export growth, India’s merchandise export growth of about 4% trails Vietnam (16%) and Singapore (6%), raising concerns about competitiveness. The Ministry of Commerce noted exports now reach 115 countries, focusing on electronics, pharmaceuticals, and foods like jackfruit and bananas. However, the widening trade deficit and import dependency, particularly on China, highlight the need for policies to bolster domestic industries and address trade imbalances.
– global bihari bureau
