The trade deficit of India also slightly increased to 25.04 billion dollars in December 2025 with the imports exceeding the exports as the world trade tensions continued. The official data indicate that exports in India have increased to $38.51 billion in December compared to the (38.13) billion in November whereas imports have increased to 63.55 billion in December compared to 62.66 billion in November leading to the higher trade gap.
The Commerce Secretary Rajesh Agrawal has observed that even with US tariffs on some Indian goods up to 50 per cent, the exports to the United States have been on the rise on a year on year basis in the first nine months of the fiscal year. India is estimated to exceed over $850 billion in cumulative exports by the expiry of the current fiscal year on March 31, 2026, which shows excellent strength in the foreign trade of the country.
Unlike trade in merchandise, the services industry of India appeared to sustain a high trade surplus. In December, service exports were at 35.50 billion, compared to imports of 17.38 billion giving a surplus of 18.12 billion. The strong delivery in services sector has served to cushion the overall effect of an increasing merchandise trade deficit.
Experts indicate that India response of diversifying its exports to the markets in China, Russia, and West Asia with the help of export incentives and future trade agreements with the European Union have helped to counter the impact of the US tariffs. The bilateral trade negotiations between India and the US are in progress which was halted last year because of failure in communication between the two governments.
The December data shows the capability of India to maintain the growth in exports despite the increasing global protectionism and the necessity to balance imports to limit the growing trade gap.
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