India’s trade deficit widened to $22.99 billion in January 2025, up from $16.56 billion in the same month last year, as goods exports dipped 2.38 per cent (year-on-year) to $36.43 billion, the third consecutive month of fall, according to government data. The decline in exports was largely owing to a sharp fall in petroleum products exports.
Imports increased by 10.28 per cent to $59.42 billion in January 2025, with a rise in inbound shipments of electronic goods, gold, non-ferrous metals, iron & steel and chemicals, among others, according to quick estimates of trade data for the month shared by the Commerce Department on Monday.
Goods exports fell in January 2025 as petroleum products exports reduced by more than half during the month, but non-petroleum exports increased 14.15 per cent to $32.86 billion demonstrating the resilience of exporters, Commerce Secretary Sunil Barthwal said. Despite global conflicts and tariff wars, India has been able to do well in both goods and services exports, he said.
“Electronics goods are driving exports, followed by drugs, pharmaceuticals and rice,” Barthwal said. He added that gems & jewellery had shown a pick-up after long, which was a good sign for the future.
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India’s goods and services exports would cross $800 billion in 2024-25, as targeted, the Secretary said. In FY24, goods and services exports were valued at $778 billion.
During April-January 2024-25, goods exports increased 1.39 per cent to $358.91 billion, while imports rose 7.43 per cent to $601.9 billion. Trade deficit during the period widened to $242.99 billion.
The exporters’ body FIEO pushed for continuation of the interest equalisation scheme, extension of R&D support, creation of a globally recognised Indian shipping line, and the resolution of GST-related export challenges to help sustain the sector’s growth.
In January, India’s gold imports increased to $2.68 billion from $1.9 billion in the same month last year. It was, however, lower than the $4.7 billion in December 2024.
The top five export destinations in January 2025 (compared to same month last year), in terms of growth in value, were the US, Japan, Bangladesh, the UK and Nepal.
The top five import sources in January 2025, in terms of growth in value, were China, Thailand, the US, Germany and the UK.