India’s Exports Rise 1.87% in December as Higher Imports Push Trade Deficit to USD 25 Billion

December Trade Performance Shows Mixed Trends​

India’s merchandise exports recorded a growth of 1.87 per cent to USD 38.5 billion in December 2025, reflecting resilience amid ongoing global economic uncertainty. However, a sharper rise in imports led to a marginal widening of the trade deficit during the month.

Imports increased 8.7 per cent year on year to USD 63.55 billion, resulting in a trade deficit of USD 25.04 billion in December 2025. This compares with USD 24.53 billion in November 2025 and USD 22 billion in December 2024.

Exports in November 2025 had seen a much stronger rise of nearly 20 per cent, highlighting month-to-month volatility in global trade conditions.

Sectoral Pressures and Growth Drivers​

Several key sectors reported a slowdown in outbound shipments during December. These included petroleum products, gems and jewellery, rice, plastics, and leather products. Labour-intensive segments such as apparel also faced pressure as global trade flows were disrupted by higher tariffs imposed by the United States under the administration of Donald Trump, which has affected demand in major markets.

At the same time, a number of sectors supported export growth. Engineering goods, electronics, marine products, and pharmaceuticals emerged as the main contributors to higher shipments during the month.

April–December Exports Remain in Growth Territory​

On a cumulative basis, India’s merchandise exports rose 2.44 per cent to USD 330.29 billion during the April to December period of FY26. Imports during the same nine-month period increased 5.9 per cent to USD 578.61 billion, taking the overall trade deficit to USD 248.32 billion.

Despite global headwinds, the trend indicates continued expansion in India’s external trade over the course of the fiscal year.

Services Trade Shows Moderation​

Services exports were estimated at USD 35.50 billion in December 2025, lower than USD 36.97 billion in December 2024. Services imports also eased marginally to USD 17.38 billion compared with USD 17.80 billion a year earlier.

Outlook for Full-Year Exports​

Briefing on the data, Commerce Secretary Rajesh Agrawal said that India’s exports are continuing to grow despite challenging global conditions. Based on current trends, total exports of goods and services are expected to cross USD 850 billion in FY26, with goods exports around USD 450 billion and services exports close to USD 400 billion.

He added that services exports are likely to touch USD 400 billion for the first time in the current fiscal year.

Measures such as the finalisation of free trade agreements, export promotion initiatives, and diversification into new markets are helping exporters navigate higher duties in certain geographies. Export growth has been observed across regions including China, Russia, and the Middle East.

Import Trends: Oil, Silver, and Gold​

On the import side, crude oil imports rose around 6 per cent to USD 14.4 billion in December 2025. Silver imports saw a sharp increase of about 80 per cent to USD 758 million. In contrast, gold imports declined 12 per cent year on year to USD 4.13 billion.

Industry Highlights Resilience​

The apparel sector posted modest growth, with ready-made garment exports rising 2.89 per cent in December 2025. Commenting on the performance, the chairman of the Apparel Export Promotion Council said the data reflects the sector’s ability to adapt amid uneven demand in key markets such as the US, supported by product diversification and a greater focus on value-added segments.

Meanwhile, the president of the Federation of Indian Export Organisations noted that the continued expansion of exports underlines the resilience and growing global competitiveness of Indian exporters, aided by market diversification, value addition, and a supportive domestic ecosystem.