Exports rise 1.87% in December, trade deficit widens marginally

New Delhi: The country’s exports grew 1.87 per cent to $38.5 billion in December last year due to global economic uncertainties, while an increase in imports led to a marginal widening of the trade deficit to $25 billion.

The country’s exports in November 2025 was up by about 20 per cent.

Imports rose by 8.7 per cent to $63.55 billion during the month under review, according to government data released on Thursday.

Trade deficit, difference between imports and exports, stood at $25.04 billion in December 2025 as against $24.53 billion in November last year and $22 billion in December 2024.

The major sectors which witnessed deceleration in exports include petroleum products, gems and jewellery, rice, plastics, and leather products.

The global trade has been disrupted due to tariffs imposed by the US. On India, the Trump administration has levied a steep 50 per cent tariffs from August. This is impacting the country’s outbound shipments from the labour-intensive sectors such as apparel.

However cumulatively, during April-December this fiscal, the country’s merchandise exports rose 2.44 per cent to $330.29 billion.

Imports grew by 5.9 per cent to $578.61 billion, leaving a trade deficit of $248.32 billion during the nine-month period of 2025-26.

Commerce Secretary Rajesh Agrawal said that despite global uncertainties, India’s exports are recording growth. Going by the trend, “we expect that the total exports (goods and services) are likely to cross $850 billion ($450 billion goods and $400 billion services) this fiscal”.

“I think, services will be touching $400 billion first time this year,” he added.

The main sectors that led to an increase in shipments included engineering, electronics, marine, and pharmaceuticals.

He added that measures such as finalisation of free trade agreements, export promotion mission and diversification into new markets are helping the exporting community deal with the high US duties.

The exports are recording healthy growth in regions including China, Russia, the Middle East.

On imports front, oil imports rose by about 6 per cent to $14.4 billion in December 2025. Silver imports too increased by about 80 per cent to $758 million.

However, gold imports dipped by 12 per cent to $4.13 billion.

As per the commerce ministry data, services export are estimated to have declined to $35.50 billion in December as compared to $36.97 billion in December 2024. Imports too dipped marginally to $17.38 billion as against $17.80 billion in December 2024.

Commenting on the data, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said the December 2025 export performance showing a modest growth of 2.89 per cent for the RMG (ready-made garments) sector reflects both the resilience and adaptability of the industry in a challenging global environment.

“While demand in key international markets such as the US has been uneven due to inflationary pressures and geopolitical uncertainties, Indian apparel exporters have managed to hold ground through product diversification, improved compliance, and a stronger focus on value-added segments,” Sakthivel said.

Federation of Indian Export Organisations (FIEO) President SC Ralhan said the continued expansion of exports is a clear testament to the resilience, agility and growing global competitiveness of Indian exporters.