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India's Trade Deficit Soars 30% to $32.15 Billion Amid Import Surge

India's merchandise trade deficit expanded significantly in September, reaching $32.15 billion. Exports showed modest growth at 6.75% while imports surged by 16.7% year-over-year. The combined trade deficit including services estimates widened to $16.61 billion. Commerce Secretary Rajesh Agrawal noted that India achieved $413.30 billion in total exports during the first six months of the financial year.

Key Points: India Merchandise Trade Deficit Rises 30% to $32.15 Billion

  • Merchandise exports rose 6.75% to $36.38 billion in September YoY
  • Imports surged 16.7% to $68.53 billion driving deficit expansion
  • Combined trade deficit widened to $16.61 billion including services estimate
  • Gold, silver, fertilizer and electronics imports showed significant increases
2 min read

India's merchandise trade deficit rises 30.37% to $32.15 bn; exports up 6.75%, imports up 16.7% in Sept (YoY)

India's trade deficit widens to $32.15 billion as imports surge 16.7% while exports grow 6.75% in September, according to Commerce Ministry data.

"In 1st 6 months of this financial year, India achieved a total export of USD 413.30 bn as against 1st 6th months of last year, registering a growth of 4.5 per cent. - Commerce Secretary Rajesh Agrawal"

New Delhi, October 15

India's merchandise export in September was up 6.75 per cent at USD 36.38 billion compared to USD 34.08 billion on a year-on-year (YoY) basis, according to the data released by the Ministry of Commerce and Industry on Wednesday.

However, merchandise imports increased by 16.7 per cent to USD 68.53 billion, compared to USD 58.74 billion on a year-over-year basis, according to the data.

This translates into a trade deficit going up by 30.37 per cent at USD 24.66 billion compared to USD 32.15 billion YoY.

On a monthly basis with the estimated services data, India's trade deficit (merchandise and services combined) widened to USD 16.61 billion in September 2025, compared to USD 8.60 billion in the same month last year, according to data released by the ministry.

However, the Commerce Ministry clarifies that since the September data for the services sector has not been released by the RBI so far, the data for September 2025 released by the Commerce Ministry is an estimate, based on the August services trade data.

The data reveals that India's total exports, which comprise merchandise and services, stood at USD 67.20 billion, a slight increase from USD 66.68 billion in September 2024.

However, imports saw a sharper rise, increasing to USD 83.82 billion from USD 75.28 billion in the same period last year.

The growing gap between exports and imports contributed to the significant increase in the trade deficit.

According to the data, imports of gold, silver, fertiliser and electronics have seen an increase.

Speaking on the data, Commerce Secretary Rajesh Agrawal said, "In 1st 6 months of this financial year, India achieved a total export of USD 413.30 bn as against 1st 6th months of last year, registering a growth of 4.5 per cent."Speaking on the growth prospects, the Commerce Secretary said that the industry has been resilient, "the supply chain has been maintained. We are doing better."

The widening gap between exports and imports highlights the continued demand for imported goods and services, even as India's outbound shipments demonstrate resilience amid global economic uncertainties.

- ANI

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Reader Comments

R
Rohit P
The increase in gold imports is always a worry during festival season. People should think about investing in productive assets rather than just gold. The trade deficit reflects this consumption pattern.
A
Arjun K
Actually, 6.75% export growth is quite good considering the global economic slowdown. Our exporters are showing resilience. The Commerce Secretary is right - we're doing better than many other economies. 👍
S
Sarah B
The 30%+ increase in trade deficit is alarming. With rupee depreciation pressures, this could impact our forex reserves. Government should review import duties on non-essential items immediately.
M
Meera T
Festival season is here and imports always spike during this time. Electronics, gold, and consumer goods - everyone wants the latest products. This pattern repeats every year around Diwali. 🪔
V
Vikram M
Respectfully, I think the government should be more transparent about these estimates. Using August data for September services trade doesn't give the complete picture. We need real-time accurate data for proper policy making.
K
Karthik V
The increase in electronics imports shows our growing digital economy and consumer demand. While concerning for trade balance, it indicates rising purchasing power and digital adoption across India. 📱

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