India's trade deficit widens to $21.5B as Trump's tariff loom
What's the story
India's trade deficit for March has widened to $21.54 billion, exceeding the $16 billion mark anticipated by economists, according to a Reuters poll. The figure marks a sharp rise from February's three-year low of $14.05 billion and is due to global trade fluctuations amid tariff concerns. In FY25, India's merchandise exports stood at $437.42 billion, marginally higher than the last fiscal year's $437.07 billion.
Trade figures
Exports and imports in March 2025
In March, India's merchandise exports stood at $41.97 billion while imports were at $64.51 billion. This indicates an increase in merchandise exports as well as imports from February's $36.91 billion and $50.96 billion, respectively. Combining merchandise and services, total exports for March stood at $73.61 billion, up from $71.71 billion in the same month last year.
Tariff impact
Import surge amid tariff concerns
The import figures for March also witnessed a sharp rise, increasing to $77.23 billion from $73.63 billion a year ago. This data comes amid US President Donald Trump's widening tariff policy, which has led to global trade fluctuations. In retaliation to these tariffs, India is trying to negotiate a bilateral trade agreement with the US in a 90-day period during which the tariffs have been suspended, except for China.
Export achievement
Record non-petroleum merchandise exports
Commerce Secretary Sunil Barthwal has announced that India has recorded its highest-ever export of non-petroleum merchandise at $37.07 billion in March. This marks a 6% growth from the previous fiscal year's total of $36.28 billion. Barthwal expressed optimism that overall exports would exceed last year's $770 billion by nearly $42 billion, calling it a "significant achievement."
Import concerns
Concerns over merchandise dumping
Barthwal also raised concerns over possible merchandise dumping into India due to reciprocal tariffs amid the ongoing trade tensions. He said, "Rising US costs may prompt exporters from countries like China, Vietnam, and Indonesia—all facing US trade deficits—to divert goods to India, potentially triggering an import surge of products at risk of being dumped in India."