Overview

• India achieved record overall exports of $821 billion in FY2024-25, with services exports growing 12.4%, offsetting flat merchandise export growth.
• The merchandise trade deficit surged to $21.54 billion in March 2025, driven by a sharp 11.4% rise in imports compared to a modest 0.7% increase in exports.
• The United States remained India’s top trading partner for the fourth consecutive year, with bilateral trade reaching $131.84 billion, including a 35% year-on-year increase in March exports to the US.
• India’s trade deficit with China swelled to a record $99.2 billion in FY2024-25, as exports to China fell 14.5% while imports from China rose by 11.5%.
• Officials highlight structural challenges in India’s manufacturing sector and reliance on imported components, emphasizing the need for industrial reforms to address trade imbalances.