India’s Merchandise Exports Rise in December as Trade Deficit Widens
New Delhi: India’s merchandise exports increased 1.87% year-on-year to $38.5 billion in December 2025, even as a sharp rise in imports led to a marginal widening of the trade deficit, official data released on Thursday showed.
Imports during the month rose 8.7% to $63.55 billion, pushing the trade deficit to $25.04 billion. This compares with a deficit of $24.53 billion in November 2025 and $22 billion in December 2024, reflecting sustained domestic demand and higher global prices.
FY26 Trade Performance So Far
During the April–December period of FY26, India’s merchandise exports grew 2.44% to $330.29 billion. Imports for the same period increased 5.9% to $578.61 billion, resulting in a cumulative trade deficit of $248.32 billion for the first nine months of the fiscal year.
Briefing the media, Commerce Secretary Rajesh Agrawal said India’s export momentum has remained resilient despite global economic headwinds. He expressed confidence that total exports, including goods and services, could cross $850 billion in FY26 if current trends continue.
Key Export Drivers and Markets
Engineering goods, electronics, marine products, and pharmaceuticals emerged as the major contributors to export growth in December. Shipments to key markets such as the United States, China, and the UAE also recorded steady expansion, supporting overall export performance.
Our Thoughts
The December trade data highlights India’s export resilience amid global uncertainty, though rising imports continue to pressure the trade balance. Sustained growth in high-value sectors and strong demand from major markets will be crucial in maintaining export momentum through the rest of FY26.