Staff Reporter / New Delhi
– India’s trade deficit has widened significantly, reaching $11.72 billion in July 2025, a substantial increase from the $10.10 billion recorded in the same month last year. The surge is primarily due to a faster rise in imports, which outpaced export growth, according to the latest data from the Ministry of Commerce & Industry.
While exports showed resilience, climbing to $68.25 billion from $65.31 billion a year ago, imports surged to $79.99 billion, up from $75.41 billion. This widening gap comes amid a globally uncertain trade environment, including the looming threat of reciprocal tariffs from the U.S.
A Reversal of Fortune
The July figures mark a sharp reversal from the previous two months. In June, India had successfully narrowed its deficit to just $3.51 billion, and in May, it stood at $6.62 billion. The latest data suggests a strong domestic demand for goods and services, which is driving up import bills despite global economic headwinds.
Key Sectors Fuel Export Growth
Commerce Secretary Sunil Barthwal noted that despite the challenges, India’s export performance remains robust. He highlighted that key sectors like engineering goods, electronics, gems and jewelry, pharmaceuticals, and chemicals were the main contributors to export growth in July.
The government’s initiatives, such as the Production Linked Incentive (PLI) scheme, are being credited with boosting exports, attracting investment, and helping India move towards its ambitious target of achieving $1 trillion in exports for the fiscal year 2025-26. Ongoing free trade agreements with countries like the UK and UAE are also expected to further strengthen India’s trade position in the coming months.
