India’s merchandise trade deficit widened to $28.38 billion in April as imports grew at a faster pace than exports, reflecting strong domestic demand and higher inbound shipments of key commodities. Official trade data showed that while exports registered moderate growth during the month, the increase was insufficient to offset the sharp rise in imports.
Higher purchases of crude oil, electronics, machinery and industrial raw materials contributed significantly to the import bill, while exporters continued to face global demand uncertainties and pricing pressures in several overseas markets. Analysts said geopolitical tensions, freight volatility and fluctuating commodity prices also influenced trade flows during the month.
Despite the wider deficit, policymakers and industry stakeholders remain optimistic about export performance in the coming months, supported by ongoing trade negotiations, diversification into new markets and stronger demand in sectors such as engineering goods, pharmaceuticals, textiles and electronics.