India’s trade deficit narrowed to $18.78 billion in June, down from $21.88 billion in May, according to data released by the Commerce and Industry Ministry on Tuesday.
Merchandise exports remained nearly flat at $35.14 billion in June compared to $35.16 billion in the same month last year. Imports, however, declined by 3.71 per cent to $53.92 billion from $56 billion a year ago.
In the services sector, India recorded an estimated surplus of $15.62 billion for June, with services exports at $32.84 billion and imports at $17.58 billion.
Combined exports of merchandise and services stood at $67.98 billion in June, while combined imports were $71.50 billion, resulting in a net trade deficit of $3.51 billion for the month.
Commerce Secretary Sunil Barthwal recently said that global conflicts and economic uncertainties are impacting Indian exports. The government, he added, is working closely with exporters to address issues related to shipping and insurance.
The trade numbers come as India continues negotiations with the US and other partners to secure favourable market access. The US has been pushing for wider access for its agricultural and dairy products — a sensitive issue for India due to its impact on the livelihoods of small farmers.
India is also seeking an exemption from former US President Donald Trump’s 26 per cent tariffs by aiming to conclude an interim trade deal. Simultaneously, India is pushing for tariff concessions on its labour-intensive exports, including textiles, leather and footwear.
Trump has announced that his administration will begin notifying trading partners about tariff rates as early as Friday, even as last-stage talks continue with countries including India to avoid higher US duties.
Meanwhile, India’s trade performance in Q3 FY25 (October–December 2024) reflected cautious resilience amid global geopolitical tensions, according to a quarterly report by NITI Aayog released on Monday. Merchandise exports in that quarter rose 3 per cent year-on-year to $108.7 billion.
The report also highlighted a sharp rise in exports of aircraft, spacecraft and parts, which entered the top ten export categories with over 200 per cent annual growth driven by demand from Saudi Arabia, the UAE and the Czech Republic.
India’s high-tech merchandise exports, led by electrical machinery and arms and ammunition, have maintained steady momentum since 2014, growing at a compound annual growth rate of 10.6 per cent.
— IANS