India’s merchandise exports rose 1.87% to $38.5 billion in December 2025, Commerce Secretary Rajesh Agrawal said on Thursday, according to PTI. Imports increased to $63.55 billion in December 2025 from $58.43 billion a year ago. The trade deficit stood at $25 billion during the month under review.
Despite global uncertainties, India’s exports are recording positive growth, Agrawal said, according to PTI. This fiscal year, exports of goods and services are likely to cross $850 billion, he added. During April–December, exports rose 2.44% to $330.29 billion.
Despite tariff headwinds, India’s exports seen crossing $850 billion
India is facing a steep tariff of 50% from the US since last year. The country is also facing uncertainties around its exports after US President Donald Trump on Monday threatened a 25% tariff on countries doing business with Iran.
“US exports have grown year-on-year in the first nine months of the fiscal year,” Rajesh Agrawal, commerce secretary, told reporters, adding that total exports could be more than $850 billion in the current fiscal year ending March, according to Reuters.
India, however, is trying to sign a trade deal with the US in the expectation of lessening the impact of the tariffs.
India broadens export markets beyond US, EU trade deal likely soon
Along with the US, India is trying to diversify exports towards China, Russia and the Middle East, backed by incentives and planned trade pacts, including with the European Union (EU).
With EU, India is close to signing a trade deal soon. According to a PTI report, this may happen later this month as negotiations are expected to conclude by January 26, Trade Secretary Rajesh Agrawal said on Thursday.
According to a Reuters report, India is awaiting more details from the US on its threat to impose tariffs on countries that do business with Iran. The Indian trade secretary said on Thursday that New Delhi’s “limited” trade with Tehran is largely in items considered humanitarian.
December services exports were estimated at $35.50 billion and imports at $17.38 billion, suggesting a services trade surplus of $18.12 billion, according to Reuters calculations.