India's trade deficit shrinks to $3.51B in June
What's the story
India's trade deficit (merchandise and services) has shrunk significantly to $3.51 billion in June, government data released today has showed. The figure is a sharp decline from the $7.3 billion recorded in June 2024, indicating a positive shift in the country's trade balance. The improvement is mainly due to strong export performance amid resilient demand in key global markets and robust service sector growth.
Export growth
Overall exports rise to $68B
The data shows that overall exports (merchandise and services) rose to $67.98 billion in June 2025 from $63.83 billion in the same month last year, marking a nearly 6.5% increase. On the other hand, overall imports saw a marginal rise to $71.5 billion in June 2025 from $71.14 billion during the same period last year.
May figures
Trade deficit also narrowed in May
In May this year, India's overall exports (merchandise and services) stood at $71.12 billion, a 2.77% year-on-year increase. The total exports for May 2024 were $69.2 billion. The trade deficit also narrowed in May to $6.62 billion from $9.35 billion during the same month last year, further highlighting the positive trend in India's trade balance over these months.
Strategies
Government measures to boost exports
The Indian government has launched several measures to boost exports, including the Production Linked Incentive (PLI) scheme in 14 sectors such as electronics, telecom, and electric vehicle batteries. For the current fiscal year 2025-26, India has set an ambitious target of $1 trillion in exports. Free trade agreements (FTAs) signed and under negotiation with various countries are also expected to give a further boost to these export numbers.