India’s trade deficit edged up slightly last month, even as exports to the US showed growth despite the imposition of steep tariffs. Merchandise exports increased to $38.51 billion in December from $38.13 billion in November, while imports rose to $63.55 billion from $62.66 billion. This resulted in a trade gap of $25.04 billion, compared with $24.53 billion in the previous month.
Commerce Secretary Rajesh Agrawal said US-bound exports have registered year-on-year growth during the first nine months of the current fiscal year. He added that India remains on course to achieve total exports exceeding $850 billion in the financial year ending March 31, 2026.
Services trade continued to provide strong support, with exports of $35.50 billion against imports of $17.38 billion, generating a surplus of $18.12 billion.
India’s strategy to diversify export destinations toward China, Russia and West Asia, supported by incentives and proposed trade agreements—including one with the European Union—has helped soften the impact of the US raising tariffs on select Indian goods to 50 percent in late August.
