Strong services sector reduces trade imbalance

• India’s merchandise trade deficit increased to $26.4 billion in April 2025, compared to $19.19 billion in the previous year.

• The services trade surplus widened to $17.77 billion, compared to $13.42 billion.

• Despite the service sector’s strong performance, India’s total trade deficit widened to $8.65 billion, compared to $5.77 billion in April last year.

• Commerce Secretary Sunil Barthwal highlighted India’s highest-ever exports in 2024-25, at $824.9 billion, a 6% increase from 2023-24.

• Merchandise exports grew 9% to $38.49 billion, while imports grew 19.1% to $64.91 billion.

• Services exports grew 17% to $35.31 billion, while imports grew 4.6% to $17.54 billion.

• Sectors with the strongest export growth included tobacco, coffee, electronic goods, mica, and coal and other ores & minerals.

• Imports grew strongly in chemicals, silver, electronic goods, and petroleum.