India’s merchandise trade deficit narrowed to $18.78 billion in June 2025, down from $21.88 billion in May, according to the latest data from the Ministry of Commerce and Industry. The improvement comes despite stagnant export growth and continued global trade uncertainties.
Goods exports stood at $35.14 billion in June, nearly unchanged from $35.16 billion recorded in the same month last year. However, imports fell by 3.71 per cent year-on-year to $53.92 billion, compared to $56 billion in June 2024, contributing to the reduced trade gap.
The services sector continued to demonstrate strong performance, posting an estimated trade surplus of $15.62 billion in June. Services exports were valued at $32.84 billion, while imports stood at $17.58 billion.
Combined exports of goods and services reached $67.98 billion in June, while imports amounted to $71.50 billion. The overall net trade deficit, factoring in both merchandise and services, stood at $3.51 billion.
Commerce Secretary Sunil Barthwal recently acknowledged that global conflicts and ongoing economic uncertainties have hurt Indian exports. However, he noted that the government is actively engaging with exporters to address issues related to shipping logistics and insurance coverage.
These trade figures come at a critical time, as India continues negotiations with the United States and other global partners to resolve key trade concerns. One major sticking point remains the US demand for wider market access to its agricultural and dairy products, a sensitive issue for India, which is keen to protect the livelihoods of its small-scale farmers.
India is also seeking to secure an exemption from the 26 percent tariffs imposed under the former President Donald Trump’s administration. The country hopes to reach an interim trade deal before July 9, while pushing for meaningful concessions on its labor-intensive exports, such as textiles, leather, and footwear.
Amid these developments, the US has announced plans to begin notifying trading partners of their applicable tariff rates as early as this Friday, signaling a tightening stance even as trade negotiations approach their final stages.
In a broader context, India’s trade performance during the third quarter of FY25 (October–December 2024) showed signs of cautious resilience. According to a quarterly report by NITI Aayog, released on Monday, merchandise exports grew 3 percent year-on-year to reach $108.7 billion during the period.
Aircraft, spacecraft, and parts emerged as a standout export category, breaking into the top ten with over 200 per cent growth, largely due to rising demand from Saudi Arabia, the UAE, and the Czech Republic.
The report also highlighted that India’s high-tech merchandise exports, including electrical machinery and arms, have gained steady momentum since 2014, registering a compound annual growth rate of 10.6 percent, underscoring the country’s evolving export profile.
