India’s merchandise exports remained flat at USD 35.14 billion in June 2025, according to new government data released on Tuesday, amid continued global economic uncertainties. This figure is nearly identical to June 2024, which recorded USD 35.16 billion in exports.
The trade deficit, however, saw a notable improvement, narrowing to a four-month low of USD 18.78 billion, primarily due to a decline in imports of crude oil and gold, both major components of India’s import basket. Overall imports in June dropped 3.71% year-on-year to USD 53.92 billion.
Mixed Performance Across Sectors
While key export segments like petroleum products, gems and jewellery, textiles, leather, iron ore, and spices recorded negative growth, some areas outperformed expectations.
Petroleum exports fell 15.92% in June to USD 4.61 billion
Electronic goods exports surged 46.93% to USD 4.14 billion
Pharma, chemicals, marine products, garments, rice, and tea also posted positive growth
In the first quarter of FY 2025-26 (April–June), cumulative exports rose 1.92% to USD 112.17 billion, while imports climbed 4.24% to USD 179.44 billion, pushing the overall trade deficit to USD 67.26 billion, up from USD 62.10 billion in the same period last fiscal.
Crude, Gold Imports Decline
On the imports front:
Crude oil imports declined 8.37% to USD 13.8 billion
Gold imports plummeted 25.73% to USD 1.9 billion
Services trade also showed strength. Services exports for June are estimated at USD 32.84 billion, a sharp rise from USD 28.67 billion in June 2024. Services imports stood at USD 17.58 billion, up from USD 15.14 billion.
Government Optimistic, FIEO Cautions
Commerce Secretary Sunil Barthwal, while briefing the media, expressed optimism. “India’s total goods and services exports in Q1 are estimated at USD 210 billion, reflecting a 6% year-on-year increase. If this trend continues, we are on track to surpass last year’s record exports of USD 825 billion.”
However, S C Ralhan, President of the Federation of Indian Export Organisations (FIEO), urged for a focused export strategy. He emphasized the potential in services, suggesting the government invest in digital infrastructure, talent development, and targeted global outreach to sustain the growth trajectory.
India’s export sector, facing headwinds from global demand volatility, is showing signs of resilience in strategic areas like electronics and services. The narrowing trade deficit provides fiscal breathing space, but sector-specific performance and global macroeconomic trends will remain key in shaping the outlook for the rest of the fiscal year.
