India's trade deficit narrows to $18.78 billion in June

India’s trade deficit for June 2025 narrowed to $18.78 billion, compared to $21.88 billion in May, government data showed Tuesday.

Economists had expected the June trade deficit to be at $22.24 billion, according to a Reuters poll, compared to $21.88 billion in the previous month.

As per the data provided by the Commerce and Trade Ministry, India's exports growth remained flat at $35.14 billion in June as against $35.16 billion same month last year. While India's imports declined by 3.71% to $53.92 billion in June as against $56 billion a year ago.


Meanwhile, the trade in services showed an estimated surplus of $15.62 billion in June, with services exports at $32.84 billion and imports at $17.58 billion, data showed.

The data comes amid ongoing trade talks with the US and other global partners. Despite Trump’s tariff threats, India’s exports to the U.S. in April–May rose to $17.25 billion from $14.17 billion last year.

The June data comes as the Centre continues to push structural reforms and global trade partnerships. The government has set a $1 trillion export target for FY26, after India’s total exports touched an all-time high of $824.9 billion in FY25, marking a 6.01% increase over $778.1 billion in FY24.

To support exports, schemes like the Production Linked Incentive (PLI) covering 14 sectors, from electronics to EV batteries, are being actively expanded. These efforts aim to reduce import dependency, boost domestic capacity, and improve India’s position in global supply chains.

India is also expanding its Free Trade Agreement (FTA) network. Recent FTAs with the UK and UAE are expected to help exporters, with negotiations also underway with the United States. Commerce Secretary Sunil Barthwal recently said FTAs were becoming “a very critical enabler of the GCC ecosystem.”

“Manufacturing comparative advantage is no longer the benchmark for trade among nations,” Barthwal said at the CII Summit on Monday. He noted that India's innovation corridors would be strengthened through FTAs like the India–UK pact, which includes a dedicated chapter on innovation.

More details on sector-wise performance and country-specific trade balances for June are expected later today from the Commerce Ministry.