In July 2025, the Ministry of Commerce & Industry (MoC&I) released trade statistics for the 1st Quarter (Q1: April-June) of Financial Year 2025-26 (FY26) and for the month of June 2025. As per the data, India’s overall trade deficit including merchandise and services has narrowed sharply to USD 3.51 billion in June 2025 compared to USD 7.30 billion in June 2024.
- The decline in the trade deficit indicates stronger export performance, supported by resilient demand in key international markets and robust service sector growth.
- India’s overall trade deficit declined 9.4% to USD 20.3 billion in Q1FY26, driven by approximately 11% growth in services export during this period.
Note: Total Trade represents the combined value of a country’s Merchandise Trade (goods) and Services Trade (services).
Key Findings for June 2025:
i.Exports and Imports: India’s overall exports were estimated at USD 67.98 billion during June 2025, showing an increase of 6.5% over June 2024.
- It also showed that India’s overall imports valued at USD 71.50 billion, registering a marginal increase of 0.50% over June 2024.
ii.Merchandise Exports and Imports: Merchandise exports remained stable at USD 35.14 billion in June 2025 compared to USD 35.16 billion in June 2024.
- While imports declined marginally to USD 53.92 billion in June 2025 from 56 billion in June 2024.
iii.Services Sector: The data highlighted that services exports for the month of June 2025 were estimated at USD 32.84 billion, increase from USD 28.67 billion in June 2024.
- While services imports increased from 15.14 billion in June 2024 to 17.58 billion in June 2025.
iv.Key Drivers for Merchandise Exports: Electronics Goods saw the highest growth in exports, increasing 46.93% to USD 4.15 billion in June 2025 compared to USD 2.82 billion recorded in June 2024.
- This was followed by exports of drugs and pharmaceuticals (+5.95%), meat, dairy & poultry products (19.70%); marine products (+13.33%) and engineering goods (+1.35%).
v.Top 5 Export Destinations: The United States of America (USA) (23.53%), China (17.18%), Kenya (76.2%), France (21.78%) and Brazil (23.02%).
vi.Top 5 Import Destinations: Ireland (265.82%), Hong Kong Special Administrative Region (SAR) of China (23.09%), Singapore (18.16%), Thailand (25.68%) and China (2.48%).
Key Findings for Q1FY26:
i.Exports and Imports: The data further showed that India’s overall exports (merchandise and services) increased by 5.94% Year-on-Year (Y-o-Y) in Q1FY26, reaching USD 210.31 billion compared to USD 198 billion recorded in the same quarter of FY25.
- While, overall India’s imports increased by 4.38%, to USD 230.62 billion in Q1FY26.
ii.Merchandise Exports & Imports: The combined value of merchandise exports stood at USD 112.17 billion in Q1FY26, registering a growth of 1.92% against USD 110.06 billion in Q1FY25.
- This slowdown in merchandise exports was mainly due to decreasing petroleum prices.
- Merchandise imports stood at USD 179.44 billion during Q1FY26, up from USD 172.16 billion in the same period of 2024.
iii.Services sector: The data showed that services exports increased by nearly 11% during Q1FY26, reaching USD 98.13 billion compared to USD 88.46 billion during the same quarter of FY25.
- Also, Services imports increased from USD 48.78 billion (inQ1 FY25) to USD 51.18 billion (in Q1FY26).
iv.Sector-Wise Growth: The electronics sector witnessed the highest growth in exports, increasing nearly 47.1% to USD 12.4 billion during Q1FY26. This was followed by the exports of marine products, which increased by over 19% to USD 1.9 billion; tobacco (+19%) and tea (16%).
- The items that saw the highest growth in imports during Q1FY26 were: sulphur and unroasted iron pyrites (284%), silver (216%), chemical materials and products (142%), and raw and waste cotton (73%).
v.Top 5 Export Destinations: The United States of America (USA) continue to be the top export destination for India, with exports increasing 22.18% to USD 25.5 billion in Q1FY26; followed by China (17.87%); Kenya(69.83%); Germany(10.79%), and Australia(14.01 %).
vi.Top 5 Import Destinations: China continue to be the top source of India’s imports, with imports from that country increasing 16.33% to USD 29.7 billion in Q1FY26; followed by the United Arab Emirates(UAE) (28.73%); Ireland(281.04%), the USA (11.68%) and and Hong Kong (33.22%).
About Ministry of Commerce and Industry (MoC&I):
Union Minister- Piyush Goyal (Constituency- Mumbai North, Maharashtra)
Minister of State (MoS)- Jitin Prasada (Constituency- Pilibhit, Uttar Pradesh, UP)
