India’s trade deficit for the month of May 2025 narrowed to $21.88 billion from a five-month high of $26.42 billion in April, data released by the Ministry of Commerce and Industry showed on Monday. This was primarily on account of lower imports.
The trade deficit was recorded lower than the $25 billion expected by economists in a Reuters poll.
Merchandise exports dropped by 2.2 per cent on-year to $38.73 billion in May, and imports fell by 1.76 per cent at $60.61 billion, as per provisional data released.
Meanwhile, the trade in services showed an estimated surplus of $14.65 billion in May, as services exports rose to an estimated $32.39 billion while imports increased to $17.14 billion, Trade Secretary Sunil Barthwal said as was cited by Reuters.
Among product categories, the trade secretary said, exports of electronic goods, including mobile phones, saw the sharpest on-year jump of 54 per cent in May, while shipments of chemicals rose by 16 per cent and those of pharmaceuticals grew by 7.38 per cent.
Furthermore, the Reuters report stated that India’s exports to the United States expanded in April-May to $17.25 billion, up from $14.17 billion a year earlier. This suggested that US tariff hikes averaging 10 per cent in early April had a limited impact.
