Despite geopolitical tensions and global trade disruptions, India’s exports showed resilience. The merchandise trade deficit narrowed to US$ 18.78 billion in June 2025 due to a sharp decline in imports, while services exports continued strong. However, merchandise exports slipped to a US$ 35.14 billion 9% lower than May 2025, according to official data released on Tuesday. Exports to the U.S. grew 22% year-on-year, undeterred by higher tariffs and volatile shipping lanes like the Strait of Hormuz triggered by the Israel-Iran conflict. With sustained growth in high-value sectors and a robust services surplus, India’s trade trajectory remains stable. Continued policy support and supply chain resilience will be key to sustaining momentum.
India’s external trade performance for June 2025 reflects a mixed but stabilizing trend. Despite a marginal decline in merchandise exports, overall trade figures benefited from a strong surge in services exports. The Ministry of Commerce & Industry’s provisional estimates indicate modest growth in total exports and a narrowing trade deficit, signaling resilience in India’s external sector amid continued global uncertainty.
Overall trade performance
The cumulative exports (merchandise and services combined) during April-June 2025 is estimated at US$ 210.31 billion, reflecting a growth of 5.94% compared to US$ 198.52 billion during April-June 2024 where as in June 2025, India’s total exports (merchandise and services) stood at US$ 67.98 billion from US$ 63.83 billion in June 2024.
The cumulative imports (merchandise and services combined) also witnessed a notable increase of 4.3%, amounting to US$ 230.62 billion, up from US$ 220.94 billion during the same period last year meanwhile, total imports (merchandise and services) for June 2025 is estimated at US$ 71.5 billion showing a positive growth of 0.50 %.
Overall trade performance (Merchandise + Services) (US$ Billion)
Source: Compiled from Ministry of Commerce and Industry, Government of India
Merchandise trade performance
Merchandise exports for April-June 2025 stood at US$ 112.17 billion, marking a 1.92% growth over US$ 110.06 billion in April-June 2024. Merchandise exports fell slightly by – 0.06% totaling US$ 35.14 billion in June 2025 from US$ 35.16 billion in June 2024.
Sectors that contributed significantly to merchandise export growth included, Exports of Electronic Goods (46.93%), Tea (32.64%), Jute Mfg. Including Floor Covering (23.44%), Meat, Dairy & Poultry Products (19.7%), Other Cereals (13.39%), Marine Products (13.33%), Cereal Preparations & Miscellaneous Processed Items (8.09%), Drugs & Pharmaceuticals (5.95%), Fruits & Vegetables (2.83%), Plastic & Linoleum (2.26%), Carpet (2.04%), Organic & Inorganic Chemicals (1.65%), Engineering Goods (1.35%), Rmg Of All Textiles (1.23%), Mica, Coal & Other Ores, Minerals Including Processed Minerals (0.86%) and Rice (0.85%) record positive growth during June 2025 over the corresponding month of last year.
Merchandise imports climbed to US$ 179.44 billion during April-June 2025 from US$ 172.16.16 billion in April-June 2024, Imports decreased to US$ 53.92 billion in June 2025 from US$ 56.00 billion in June 2024.
Under the merchandise imports, Imports of Pulses (-74.96%), Newsprint (-61.66%), Gold (-25.73%), Transport Equipment (-20.46%), Coal, Coke & Briquettes, Etc. (-19.13%), Pearls, Precious & Semi-Precious Stones (-18.11%), Project Goods (-16.29%), Leather & Leather Products (-14.86%), Pulp And Waste Paper (-14.22%), Iron & Steel (-11.78%), Dyeing/Tanning/Colouring Mtrls. (-11.74%), Organic & Inorganic Chemicals (-8.86%), Petroleum, Crude & Products (-8.37%), Non-Ferrous Metals (-7.98%), Wood & Wood Products (-3.65%), Artificial Resins, Plastic Materials, Etc. (-2.52%) and Textile Yarn Fabric, Made-Up Articles (-1.43%) record negative growth during June 2025 over the corresponding month of last year.
Merchandise Trade – June 2025
| Category | June 2025
|
June 2024
|
Growth (%)
|
| Exports | 35.14 | 35.16 | – 0.06% |
| Imports | 53.92 | 56.00 | – 3.71% |
| Trade Deficit | -18.78 | -20.84 | Improved |
Source: Compiled from Ministry of Commerce and Industry, Government of India
Services trade performance
Services trade continued to be robust. Services exports saw strong growth, rising 10.93% Y-o-Y to US$ 98.13 billion in Apr-Jun 2025. Services imports also increased to US$ 51.18 billion in Apr-Jun 2025, resulting in a healthy services trade surplus of US$ 46.95 billion.
Services Exports rose to US$ 32.84 billion in June 2025 from US$ 28.67 billion in June 2024, representing a 14.55% increase. Services Imports grew to US$ 17.58 billion in June 2025 up from US$ 15.14 billion.
Services Trade Performance – June 2025
| Category | June 2025
|
June 2024
|
Growth (%)
|
| Services Exports | 32.84 | 28.67 | +14.55% |
| Services Imports | 17.58 | 15.14 | +16.12% |
| Trade Surplus | 15.26 | 13.53 | Improved |
Source: Compiled from Ministry of Commerce and Industry, Government of India
Despite global headwinds, India’s exports have remained resilient, pointing to a strong Q1 FY26 performance amid ongoing geopolitical and economic disruptions, including tensions in the Strait of Hormuz triggered by the Israel-Iran conflict.
Currently, the global trade landscape is characterized by volatility. Indian exporters are facing difficulties, including the potential for heightened US tariffs on exports of Indian goods, as well as interruptions to shipping routes due to Israel’s military actions against Iran in June.
The tariff threats issued by US President Donald Trump have contributed to the prevailing uncertainty, resulting in increased export costs and restricted access to vital markets. In spite of the recent hike in base tariffs on Indian exports to the United States (which have risen to 10%), outbound shipments to the US have shown remarkable resilience. During the April–June quarter, exports to the US surged to US$ 25.52 billion, in contrast to US$ 20.89 billion during the same period last year, reflecting sustained demand and competitiveness.
Nevertheless, the ability of Indian exporters to adapt—particularly in value-added sectors such as electronics, pharmaceuticals, and services—demonstrates growing structural strength. Moving forward, sustaining this momentum will require proactive policy support, enhanced trade facilitation, and strategic hedging against geopolitical risks through diversified market access and supply chain resilience.
