MoC&I Report: India’s Trade Deficit Contracts Sharply to USD 3.51 Billion in June 2025.
Economy Business
In mid-July 2025, the Ministry of Commerce & Industry (MoC&I) released June trade data, revealing that India’s combined merchandise and services trade deficit narrowed significantly to USD 3.51 billion, compared to USD 7.30 billion a year ago, marking a robust year-on-year (Y-o-Y) contraction in trade imbalance.
- The slide in deficit reflects strong export growth as total exports in June 2025 rose by an impressive 6.5% to USD 67.98 billion, while total imports remained subdued, increasing marginally by 0.5% to USD 71.50 billion, indicating improved trade dynamics and positive external demand.
- In terms of composition, merchandise exports held steady at USD 35.14 billion, nearly matching the USD 35.16 billion recorded in June 2024. However, merchandise imports declined to USD 53.92 billion, down from USD 56.00 billion, primarily due to lower crude oil and gold imports, contributing to a leaner goods trade deficit.
- The services sector continued its strong performance with exports rising from USD 28.67 billion in June 2024 to USD 32.84 billion in June 2025, while services imports also grew modestly from USD 15.14 billion to USD 17.58 billion. The resulting services surplus supported overall trade balance improvements.
Main Point :- (i) Among specific export sectors, electronics goods, pharmaceuticals, engineering products, marine products, and meat, dairy & poultry showed notable growth. Electronics exports increased to USD 4.15 billion, while pharmaceuticals climbed to USD 2.62 billion, underscoring diversification in India’s merchandise export base.
(ii) Regionally, the United States (23.5%), China (17.2%), Kenya (76.2%), France (21.8%), and Brazil (23.0%) remained key export destinations. On the import side, major supplies came from Ireland (266%), Hong Kong SAR (23.1%), Singapore (18.2%), Thailand (25.7%), and China (2.5%), reflecting global trade patterns.
(iii) On a quarterly comparison, trade during April–June 2025 (Q1 FY26) showed strong momentum: total exports rose to USD 210.31 billion (+5.9% Y-o-Y) and imports to USD 230.62 billion (+4.4%). The cumulative trade deficit narrowed by nearly USD 2.1 billion to USD 20.31 billion, reflecting a sustained positive trend across goods and services.
About MoC&I
Minister : Shri Piyush Goyal
Headquarters: New Delhi
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