India’s Trade Deficit Widens to $8.65 Billion in April Amid Surge in Merchandise Imports

India’s total trade deficit went up to $8.65 billion in April 2025, compared to $ 5.77 billion it was a year before. This rise was thanks to merchandise imports growing 19.1%, up to $64.91 billion, while exports only increased by 9% to $38.49 billion. Key export products such as tobacco, coffee, electronics, and minerals all showed strong increases. Meanwhile, the services sector saw exports go up by 17%, which helped keep the country running a trade surplus of $17.77 billion for services. Overall exports in 2024-25 were at their highest ever, coming in at $824.9 billion and rising 6% from the year before.

India’s Trade Deficit in April 2025

Context:

• India’s expanding trade deficit in April 2025 shows that more goods are being brought in from other countries as India’s exports keep growing steadily. 

• This data shows that both goods and services play a big part in how a country trades with other countries.

Key Details

• Trade Deficit:

  • The total trade deficit widened from $5.77 billion last April to $8.65 billion in April of this year.

• Merchandise Trade:

  • Merchandise exports increased by 9% to $38.49 billion.

  • Merchandise imports surged 19.1% to $64.91 billion.

  • Merchandise trade deficit went up from $19.19 billion to $26.4 billion compared to last year.

• Export Growth by Sector:

  • Tobacco exports rose by 66.43%.

  • Coffee exports increased by 47.85%.

  • Electronic goods exports grew by 39.51%.

  • Mineral exports like mica, coal, and ores increased by 34.43% from last year.

  • Fruits and vegetables exports went up by 30.72% this year.

  • Marine products exports rose by 17.81%.

• Services Trade:

  • Services exports went up by 17% and reached $35.31 billion.

  • Services imports went up by 4.6% to $17.54 billion.

  • Increasing to $17.77 billion in services trade in April 2025.

• Overall Exports:

  • India’s total exports (both goods and services) in 2024-25 reached $824.9 billion, which is 6% more than what they were for 2023-24.

Conclusion:

 While India’s merchandise imports have grown quickly, causing the trade deficit to widen, the strong increase in exports, especially in areas like services, shows that India is doing a good job keeping up in trade with other countries. Managing the merchandise trade gap while keeping up the strength of India’s exports will be really important for keeping its economy steady in the future.