Overview

• India’s merchandise trade deficit rose to $26.42 billion in April 2025, a five-month high, up from $21.54 billion in March, as imports surged by 19.12% year-on-year.
• Merchandise exports grew 9.03% year-on-year to $38.49 billion, with a 27% increase in shipments to the US, driven by exporters rushing orders ahead of proposed reciprocal tariffs.
• The US announced a 26% tariff on Indian goods in April, later suspended until July 8, creating temporary export advantages for Indian goods over competitors like China and Vietnam.
• India’s services trade surplus of $17.77 billion in April, driven by a 17% rise in services exports, helped offset the overall trade deficit, which stood at $8.65 billion.
• Commerce Secretary Sunil Barthwal expressed optimism about maintaining export momentum, highlighting government support and ongoing trade negotiations with key partners like the US.