NewKerala.com

Key Points

India's trade deficit widened to $11.72 billion in July 2025 due to higher import growth compared to exports. The Commerce Ministry highlighted strong export performance in sectors like engineering goods and pharmaceuticals. Global uncertainties, including US tariff policies, continue to impact trade dynamics. The government's PLI scheme aims to enhance export competitiveness and reduce import dependency.

Key Points: India's Trade Deficit Hits $11.72 Billion in July 2025 Amid Rising Imports

  • Trade deficit rises to $11.72B from $10.10B YoY
  • Exports grow to $68.25B while imports surge to $79.99B
  • PLI scheme boosts manufacturing and export competitiveness
  • US tariff policies add to global trade uncertainties
3 min read

India's trade deficit widens to USD 11.72 bn in July 2025 on increased imports

India's trade deficit widens to $11.72B in July 2025 as imports outpace exports despite global uncertainties, per Commerce Ministry data.

"Despite uncertain global policy environment, India's exports have grown substantially and much higher than global export growth. - Commerce Secretary Sunil Barthwal"

New Delhi, August 14

India's overall trade deficit (merchandise and services combined) widened to USD 11.72 billion in July 2025, up from USD 10.10 billion in the same month last year, driven by a sharper rise in imports than exports, according to the data released by the Commerce & Industry Ministry.

New Delhi [India], August 14 (ANI): India's overall trade deficit (merchandise and services combined) widened to USD 11.72 billion in July 2025, up from USD 10.10 billion in the same month last year, driven by a sharper rise in imports than exports, according to the data released by the Commerce & Industry Ministry.

The data shows that the overall exports stood at USD 68.25 billion in July 2025, marking a growth from the same month of the previous year at USD 65.31 billion.

On the other hand, imports of the country grew at a faster pace, reaching USD 79.99 billion compared with USD 75.41 billion a year earlier.

The deficit figures come amid the uncertain global trade conditions and announcements of 50 per cent reciprocal tariffs announced by US President Donald Trump.

Commenting on the trade figures, Commerce Secretary Sunil Barthwal said, "Despite uncertain global policy environment, exports both merchandise as well as services estimates in July as well as in the financial year 2025-26 from April to July, period for both July as well as for April to July period have grown substantially and much higher than the global export growth.""So for both July month as well as for the month for the period of April to July, India's exports have done very well now. The major drivers of these merchandise exports growth for July month include engineering goods, electronic goods, gems and jewelry, drugs and pharmaceuticals and organic and inorganic chemicals," he added.

The widening gap between exports and imports underscores continued demand for imported goods and services, even as India's outbound shipments show resilience despite global economic uncertainties.

In June, India's overall trade deficit had narrowed significantly to USD 3.51 billion, down from USD 7.30 billion in June 2024, as exports outpaced imports on a year-on-year basis.

The country's trade deficit in May had also narrowed to USD 6.62 billion from USD 9.35 billion in the same month last year.

In May 2025, India's overall exports, merchandise and services combined, were reported at USD 71.12 billion, marking a 2.77 per cent rise on a yearly basis. The total exports in May 2024 were pegged at USD 69.20 billion.

Among various steps the government took to increase exports include the Production Linked Incentive (PLI) scheme in 14 sectors, including electronic goods, telecom, EV battery, to name a few.

The production-linked incentive (PLI) scheme of the government has helped India's export growth and made Indian manufacturers globally competitive, attracted investments, enhanced exports, integrated India into the global supply chain and reduced dependency on imports.

The government has set a target of USD 1 trillion of exports in the current financial year 2025-26.

The free trade agreements (FTA) signed and under negotiation with various countries are likely to boost exports. The most recent FTA was signed with the United Kingdom and the UAE.

- ANI

Share this article:

Reader Comments

P
Priya S
Why is nobody talking about the impact of US tariffs? This will hurt our exporters badly. Government should negotiate better trade deals to protect our interests.
A
Aman W
At least our service exports are strong! IT sector is carrying the nation as usual. But we need to reduce oil imports - electric vehicles can't come soon enough âš¡
S
Sarah B
The numbers show resilience but the deficit is worrying. As an NRI, I see how much Indian products are valued abroad. Maybe we need better marketing of 'Make in India' products globally.
K
Karthik V
Pharma and electronics exports growing is excellent news! But why are we still importing so much Chinese goods? Time to become truly Atmanirbhar.
N
Nisha Z
The UK FTA will help bridge this gap. More such agreements needed with EU and African nations. Our exporters deserve better market access!
D
David E
The deficit is manageable considering global conditions. India's growth story remains strong. The focus on manufacturing through PLI will pay off in 2-3 years.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50