NEW DELHI— India’s trade deficit narrowed to $18.78 billion in June, down from $21.88 billion in May, according to figures released Tuesday by the Commerce and Industry Ministry.
Merchandise exports remained nearly flat, registering $35.14 billion in June compared to $35.16 billion in the same month last year. Imports declined by 3.71 percent year-on-year to $53.92 billion, down from $56 billion.
In the services sector, India posted an estimated trade surplus of $15.62 billion for June. Services exports were valued at $32.84 billion, while imports stood at $17.58 billion.
The combined exports of goods and services reached $67.98 billion during the month, with total imports at $71.50 billion, resulting in a net trade deficit of $3.51 billion.
Commerce Secretary Sunil Barthwal had noted last month that geopolitical tensions and global uncertainties continue to weigh on India’s export performance. “The government is proactively working with exporters to address their concerns regarding shipping and insurance,” he said.
The release of the latest trade data comes amid ongoing trade negotiations between India and several key partners, including the United States.
Talks with the US remain focused on market access and tariff-related issues. Washington is pushing for greater access to India’s agricultural and dairy sectors — areas that New Delhi considers sensitive due to the livelihood concerns of small farmers.
India, meanwhile, is seeking exemption from 26 percent tariffs imposed under former President Donald Trump’s administration and hopes to finalize an interim deal to that effect. Additionally, India is pressing for significant tariff reductions on its labor-intensive exports such as textiles, leather, and footwear.
The White House recently indicated it may begin notifying trading partners of their updated tariff rates as early as Friday, even as last-stage negotiations continue.
India’s broader trade trends for Q3 FY25 (October–December 2024) reflected a cautiously resilient stance amid global turbulence, according to the NITI Aayog’s latest quarterly report released Monday.
The report said merchandise exports grew by 3 percent year-on-year to $108.7 billion during the quarter. Notably, exports of aircraft, spacecraft, and related parts surged over 200 percent, driven by higher demand from Saudi Arabia, the UAE, and the Czech Republic.
High-tech merchandise exports, particularly in electrical machinery and arms/ammunition, have shown sustained growth since 2014, clocking a compound annual growth rate of 10.6 percent. (Source: IANS)
