India's Export Surge Faces Widening Trade Gap Challenge
India's exports surged 12.7% to USD 73.80 billion in April 2025, but imports grew faster, expanding by 15.7% to USD 82.45 billion. This widened the trade deficit to USD 8.65 billion. Despite reaching a record USD 825 billion in annual exports, concerns over import dependence continue to loom.
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- India
India witnessed a significant rise in overall exports, including merchandise and services, reaching USD 73.80 billion in April 2025, marking a 12.7% increase from USD 65.48 billion in April of the previous year, as reported by the Commerce Ministry on Wednesday.
However, imports surged even faster, growing to USD 82.45 billion in April 2025, a 15.7% increase from USD 71.25 billion in April 2024, underscoring an expanding trade gap. This discrepancy contributed to a widened trade deficit of USD 8.65 billion, a 50% increase compared to USD 5.77 billion last year.
Commerce Secretary Sunil Barthwal highlighted that India's exports reached a record USD 825 billion in 2024-25, showcasing resiliency among Indian exporters. The figures show a 9.03% rise in merchandise exports to USD 38.39 billion in April 2025, with imports up 19.12% to USD 64.91 billion, emphasizing the growing import demand potentially fueled by domestic consumption.
The rapid import growth highlights the importance of boosting exports and managing import dependence, particularly in critical sectors, to maintain economic momentum. The March 2025 trade deficit increased sharply to USD 21.54 billion from a three-year low of USD 14.05 billion in February.
(With inputs from agencies.)
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