In January 2025, India’s merchandise exports declined by about 2.4% to US$ 36.4 billion, while imports rose by 10.3% to US$ 59.42 billion. This led to a 38.9% increase in the trade deficit, which reached US$ 23 billion.
Despite the decline in exports, sectors such as electronics, engineering goods, and pharmaceuticals experienced growth. However, imports, especially gold, saw a significant increase.
According to the latest government data, India’s trade deficit moved up 38.9% to US$ 22.99 billion in January 2025 from US$ 16.5 billion in January 2024 (US$ 21.9 billion in December 2024), as goods exports fell by 2.4% YoY to US$ 36.4 billion, marking the third consecutive monthly decline. The drop in exports was primarily driven by a significant decline in petroleum product shipments.
Imports, on the other hand, rose by 10.28 % to US$59.42 billion in January 2025, driven by increased inbound shipments of electronic goods, gold, non-ferrous metals, iron & steel, and chemicals. Gold imports in January 2025 rose to US$ 2.68 billion from US$ 1.9 billion a year earlier but were lower than the US$ 4.7 billion recorded in December 2024.
The data showed that India’s total exports (both merchandise and services) for January 2025 are estimated at US$ 74.97 billion, showing a positive growth of 9.72% compared to January 2024. Whereas, Total imports (both merchandise and services) for the month are estimated at US$ 77.64 billion, reflecting a positive growth of 12.98% compared to January 2024.
Commerce Secretary Sunil Barthwal noted that while petroleum product exports declined by more than half, non-petroleum exports demonstrated resilience, growing by 14.15 % to US$ 32.9 billion. He highlighted that, despite global conflicts and tariff wars, India has maintained strong performance in both goods and services exports. Electronics, pharmaceuticals, and rice have led export growth, while the gems & jewellery sector showed signs of revival, signaling a positive outlook.
A positive growth in January 2025, as compared to the same month last year, was registered in export of various goods, led by:
- Other Cereals (103.2%),
- Electronic Goods (79%),
- Tobacco (59.2%),
- Coffee (57.1%),
- Rice (44.6%),
- Jute Mfg. Including Floor Covering (40.7%),
- Meat, Dairy & Poultry Products (35.7%),
- Mica, Coal & Other Ores, Minerals Including Processed Minerals (27.7%),
- Tea (22%),
- Drugs & Pharmaceuticals (21.5%),
- Handicrafts Excl. Hand Made Carpet (19.5%),
- Carpet (18%),
- Cotton Yarn/Fabs./Made-Ups, Handloom Products Etc. (16.4%),
- Gems & Jewellery (15.9%),
- Plastic & Linoleum (13.3%),
- Man-Made Yarn/Fabs./Made-Ups Etc. (12.1%),
- RMG Of All Textiles (11.4%),
- Cereal Preparations & Miscellaneous Processed Items (11.1%),
- Ceramic Products & Glassware (10.4%)
India’s oil imports fell by 13.5% to US$ 13.4 billion, while non-oil imports rose by 19.9% to US$ 46 billion in January 2025 compared to January 2024. The share of oil in total imports was 22.6% in January 2025, down from 28.8% in January 2024.
Key contributors to the overall rise in imports include: electronic goods (17.8%); machinery, electrical & non-electrical (27.8%), gold (40.8%), organic & inorganic chemicals (36.9%), chemical material & products (71.9%), metaliferrous ores & other minerals (65.5%) and pulses (144.6%).
Imports also increased for silver (82.8%); non-ferrous metals (26%); fertilisers, crude & manufactured (72.9%); iron & steel (6.9%), vegetable oil (11.4%), medicinal & pharmaceutical products (16.1%), artificial resins, plastic materials, etc. (5.9%) and transport equipment (1.6%).
A negative growth in January 2025 compared to the same month last year was recorded in import of the following- Project Goods (-48.14%), Pearls, Precious & Semi-Precious Stones (-29.11%), Coal, Coke & Briquettes (-15.22%), and Petroleum, Crude & Products (-13.5%).
The top 5 export destinations, in terms of change in value, exhibiting positive growth in January2025 as compared to January2024 are USA (39%), Japan (53.5%), Bangladesh PR (17.3%), UK (14.8%) and Nepal (20.8%).
The top five import sources showing growth in value in January 2025 compared to January 2024 are China (17.1%), Thailand (136.6%), the USA (33.5%), Germany (72.2%), and the UK (101.6%).
Merchandise Trade during April-January 2024-25
On a cumulative basis, India’s merchandise exports grew by 1.4% to US$ 358.9 billion, while merchandise imports rose by 7.4% to US$ 601.9 billion during April-January 2025. The increase in imports was largely driven by a 6.4% rise in oil imports, which reached US$ 154.8 billion. As a result, India’s merchandise trade deficit widened to US$ 242.99 billion in April-January 2025, up from US$ 206.3 billion in the same period last year.
Major export destinations, in terms of positive YoY growth in April-January 2024-25 are US (8.9%), UAE (6.8%), Netherland (9.2%), UK (14.2%) and Japan (21.2%).
From April to January 2024-25, the top five import sources exhibiting growth in value compared to the same period in 2023-24 are the UAE (35.6%), China (10.6%), Russia (7.2%), Switzerland (16.6%), and Thailand (32.6%).
Trade in ServicesÂ
In January 2025, services exports are estimated at US$ 38.5 billion, up from US$ 31 billion in January 2024. While the Services imports are estimated at US$ 18.22 billion, compared to US$ 14.8 billion in January 2024.
The estimated value of service exports for April-January 2024-25 is US$ 323.7 billion, up from US$ 282.7 billion during the same period in 2023-24 (over 14%).
For April-January 2024-25, service imports are estimated at US$ 168.2 billion, compared to US$ 146.5 billion in April-January 2023-24. Services trade surplus for the period is estimated at US$ 155.5 billion, an increase from US$ 136.2 billion in the same period of 2023-24.
In FY24, total exports (merchandise+services) were valued at US$ 778 billion. Commerce Secretary Mr. Barthwal expressed confidence that India’s goods and services exports would surpass US$ 800 billion in 2024-25, in line with the target.
