India’s trade deficit widened in January 2025, reaching $22.99 billion compared to $16.56 billion in the same month last year, marking a 24.85% increase YoY. From April 2024 to January 2025, the total trade deficit rose to $87.47 billion from $70.06 billion in the same period last year.
The widening gap was driven by lower exports and higher imports. In January 2025, exports fell to $36.43 billion from $37.32 billion a year ago, while imports surged to $59.42 billion from $37.32 billion the previous year. However, over the 10 months, exports grew by 7.21% YoY, adding $46 billion.
Among key sectors, non-petroleum exports increased by 14.47% between April 2024 and January 2025. Electronic goods exports saw a sharp rise of 78.97%, while pharmaceutical exports grew by 21.46%. The gems and jewellery sector also reported positive growth despite global economic challenges.
To boost exports, the government has prioritized them in the Union Budget 2025 under the Export Promotion Mission. The initiative aims to support new exporters, expand into untapped markets, and develop innovative products.
The mission also seeks to remove non-tariff barriers that MSMEs face, which hinder their global competitiveness. Bharat Trade Net, a newly introduced digital platform, is expected to streamline export processes, similar to how UPI transformed digital payments in India.