Representative image
Credit: iStock Photo
New Delhi: India’s merchandise trade deficit narrowed to $18.78 billion in June from $21.88 billion recorded in the previous month largely due to decline in imports even as exports remained flat, as per official data released on Tuesday.
India's goods imports declined by 3.71% year-on-year to $53.92 billion in June, while exports declined marginally to $35.14 billion during the month under review from $35.16 billion recorded in May.
In services trade India is estimated to have a surplus of $15.62 billion in June. India’s services exports in June are pegged at $32.84 billion while services imports were valued at $17.58 billion, as per data released by the Ministry of Commerce and Industry.
Robust growth in services exports helped narrow the overall trade deficit to $3.51 billion in June from $7.30 billion recorded in the same month last year.
Briefing media Commerce Secretary Sunil Barthwal claimed that India’s overall exports performance in the first three months of the current financial year was remarkably strong despite global uncertainties and disruptions in global supply routes caused due to the recent Israel-Iran conflict
India’s total exports (merchandise and services combined) was recorded at $67.98 billion in June, registering a year-on-year growth of 6.5%. The overall imports in June is pegged at $71.50 billion, which is 0.50% higher than June 2024 data.
Barthwal said June 2025 exports value was impacted due to fall in the prices of crude oil.
The cumulative exports (merchandise & services) during April-June 2025 is estimated at $210.31 billion, which is 5.94% higher when compared with $198.52 billion in the corresponding period of the previous year. Cumulative value of merchandise exports during April-June 2025 was $112.17 billion, as compared to $110.06 billion during April-June 2024, registering a growth of 1.92%.
“Both merchandise as well as services are in the positive territory. They have done better than what was expected," the Commerce Secretary said referring to the quarterly data.
Despite tariff threats and uncertainties, India’s exports to the US in April–May period rose to $17.25 billion from $14.17 billion recorded in the same period last year.
“Our exporters are clearly rising to the occasion and delivering, even in an unsettled global trade environment,” said S C Ralhan, President, Federation of Indian Export Organisations (FIEO).
Ralhan noted that the sharp drop in imports may also reflect the success of import substitution efforts and the strengthening of domestic manufacturing capacities, in line with the government’s Atmanirbhar Bharat vision.
Engineering good shipments increased by 1.3% year-on-year to $9.50 billion in June. Cumulatively, engineering goods exports stood at $28.90 billion in the April-June period, registering a growth of 3.62%.
"The ongoing geopolitical tensions across West Asia, the Middle East, and Europe continue to cast a shadow on global trade and have a disruptive impact on supply chains," said Pankaj Chadha, Chairman, EEPC India.
"Going forward, it is hoped that these challenges will subside and the world economy will pick up. A favourable India-US bilateral trade agreement would help the engineering exports sector gather pace," Chadha said.