The Ministry of Commerce and Industry reported that India’s merchandise trade deficit increased 30.37 per cent year on year to USD 32.15 billion in September 2025, a significant increase. The fact that this is the biggest deficit since November 2024 shows how much pressure India’s trade balance is still under.
From USD 34.08 billion in the same period last year to USD 36.38 billion this month, exports grew moderately by 6.75 per cent. Nonetheless, imports grew at a significantly faster rate than exports, rising 16.7 per cent to USD 68.53 billion from USD 58.74 billion annually. A major factor driving up imports was the increased demand for electronics, fertilisers, gold, and silver. Imports of fertiliser in particular have increased this year as a result of higher agricultural demand.
A sharp increase in inflows was indicated by the 3.6 per cent monthly increase in merchandise exports and the 11.3 per cent monthly increase in imports. The growing trade gap was caused in part by the increased import bill, which was driven by essential industrial inputs and precious metals.
India’s combined trade deficit (merchandise and services) increased to an estimated USD 16.61 billion in September when accounting for services trade, up from USD 8.60 billion in the same month last year. The September services data, however, is based on estimates because the Reserve Bank of India had not yet made official figures available.
India exported USD 67.20 billion worth of goods and services in total, which was slightly more than USD 66.68 billion the year before, despite the widened deficit. Commerce Secretary Rajesh Agarwal pointed out that non-petroleum exports hit a record USD 189.49 billion in the first half of fiscal 2025–26, despite the unstable global environment that affects supply chains and market access.
Future projections indicate that despite the nation’s efforts to boost exports through diversified markets, the trade deficit will likely continue to be strained by ongoing imports of capital goods, energy, gold, and electronics. India’s difficulties in maintaining trade equilibrium in a complicated and unstable global trade environment are highlighted by the widening deficit. |
