India’s trade deficit narrowed to $18.78 billion in June 2025, a clear improvement from $21.88 billion in May, according to fresh data from the Ministry of Commerce.
The reason? Imports dropped, while exports stayed steady. This is the lowest trade gap in months and gives the economy a small but welcome breather.
Imports Fall, Exports Stay Flat
India’s imports fell by 3.71% to $53.92 billion, compared to $56 billion in June 2024. This fall in imports helped shrink the trade deficit.
On the other hand, exports stayed mostly the same, coming in at $35.14 billion, just a bit below last year’s $35.16 billion.
This mix of falling imports and flat exports means India is still feeling global pressure, but it’s handling it better.
Services Surplus Gives Extra Boost
On the services side, things looked brighter. India posted a solid services surplus of $15.62 billion.
Services exports stood at $32.84 billion, while services imports were just $17.58 billion.
When you add both goods and services, India exported $67.98 billion in June and imported $71.50 billion, giving a total trade gap of $3.51 billion.
Export Growth Slows Due to Global Issues
Still, things aren’t all smooth. Commerce Secretary Sunil Barthwal said that geopolitical tensions and global economic worries are slowing down export growth.
Shipping and insurance challenges are also hurting businesses. The government says it’s working with exporters to fix these roadblocks.
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US Trade Talks Heat Up
The latest numbers come as India holds tough trade talks with the United States.
The US wants better access to Indian markets for agriculture and dairy, but that’s a tricky topic because it affects Indian farmers.
India is asking for lower tariffs on items like textiles, leather, and shoes. It also wants relief from 26% tariffs imposed during the Trump years.
But tensions are high. If talks fail, Trump may bring back tariffs as early as this Friday.
High-Tech Exports Show Promise
Even with global troubles, India’s broader trade outlook remains cautiously strong.
A new report by NITI Aayog shows exports grew 3% in Q3 FY25, touching $108.7 billion.
A big surprise came from aircraft and spacecraft parts. Exports in this category jumped over 200%, thanks to demand from countries like Saudi Arabia, the UAE, and Czech Republic.
Other areas like electrical machinery and arms are also growing fast, showing India’s shift towards high-tech exports.
Why It Matters
India’s shrinking trade deficit is a sign of resilience. In a shaky global market, this is a bold step forward.
It shows India can hold strong even when the world slows down.
For young Indians watching the economy, this is a reminder: We’re not just surviving—we’re moving forward.
Also Read India’s Consumer Inflation Falls to 2.10% in June, Lowest in 6 Years
