India’s goods trade deficit widened significantly in December 2025 to $25.04 billion from $20.63 billion in the previous December as exports increased 1.86 per cent (year-on-year) to $38.51 billion, while imports grew at a higher 8.8 per cent to $63.55 billion, per data released by the Commerce Department.
Exports to the US declined a marginal 1.83 per cent in December 2025 to $6.89 billion amid the 50 per cent tariffs applied by Washington on most Indian exports in August-end. “In the US we are still holding on as there is more focus on areas where tariffs are low. Where tariffs are more, exporters are showing more resilience and holding on to supply chains,” Commerce Secretary Rajesh Agrawal said at a media briefing on Thursday.
On the proposed India-US bilateral trade agreement (BTA), the Secretary said the negotiations were on in a virtual mode and efforts were on to close gaps in the “remaining issues”.
In the April-December 2025-26 period, goods exports increased 2.44 per cent to $330.29 billion. The growth was propelled by sectors such as electronics, pharmaceuticals, meat and dairy, marine products, and engineering goods, Agrawal highlighted.
“Despite all the challenges we have been facing, we have maintained positive growth… This fiscal exports of goods and services are likely to cross $850 billion compared to $824 billion last fiscal,” he said.
The US continued to be India’s top export market in April-December 2025-26 with exports at $65.88 billion compared to $60.03 billion in the same period of the previous fiscal. The UAE was the second largest destination with exports at $28.9 billion.
China was the third largest export market for India with shipments from India in April-December 2025-26 at $14.25 billion compared to $10.42 billion in the same period last fiscal.
India’s export growth to China was a welcome one although it was not due to any particular strategy, Agrawal said. “The overall recalibration of supply chains in the world is helping India in increasing its exports to China,” he said.
India’s goods imports in April-December 2025 increased 5.9 per cent to $578.61 billion driven by electronics, gold, machinery and non-ferrous metals.
Responding to a query on US President Donald Trump’s warning of 25 per cent tariffs on countries doing any business with Iran, the Commerce Secretary said that the government was awaiting details on the proposed American measure.
