India’s Total Trade Deficit
Context: India's trade deficit widened to $8.65 billion in April 2025 despite export growth, due to a sharper rise in merchandise imports over exports.
Important Pointers:
Trade Deficit Definition: The trade deficit occurs when a country’s imports exceed its exports. It includes both merchandise (goods) and services trade.
Trade Snapshot (April 2025):
Merchandise Exports: Grew 9% YoY to $38.49 billion in April 2025.
Merchandise Imports: Rose sharply by 19.1% to $64.91 billion, leading to a merchandise trade deficit of $26.4 billion (vs. $19.19 billion in April 2024).
Services Trade Surplus: Expanded to $17.77 billion, up from $13.42 billion in April 2024.
Services exports: $35.31 billion (↑17%)
Services imports: $17.54 billion (↑4.6%)
Overall Trade Deficit (Goods and Services): Widened to $8.65 billion, compared to $5.77 billion in April 2024.
Year Performance (2024–25):
Total Exports (Merchandise and Services): Reached $824.9 billion, the highest-ever, up 6% over 2023–24.
Sector-wise Highlights:
Top Merchandise Export Growth Sectors:
Tobacco: ↑ 66.43%
Coffee: ↑ 47.85%
Electronic goods: ↑ 39.51%
Mica, coal, ores & minerals: ↑ 34.43%
Fruits & vegetables: ↑ 30.72%
Marine products: ↑ 17.81%
Tea: ↑ 15.93%
Top Import Growth Items:
Chemicals: ↑ 115.76%
Silver: ↑ 35.45%
Electronic goods: ↑ 31.19%
Petroleum: ↑ 25.60%