India's Trade Deficit Widens to $25.04 Billion in December as Imports Surge

• India's merchandise trade deficit reached $25.04 billion in December 2025, primarily due to a significant increase in imports.
• Merchandise exports saw a modest rise of 1.86% to $38.51 billion, while imports jumped to $63.55 billion compared to the previous year.
• Overall trade deficit (goods and services) expanded to $6.92 billion in December 2025, a sharp increase from $1.46 billion a year ago.
• The government is diversifying exports to China, Russia, and the Middle East, and pursuing trade pacts to cushion against US tariffs.
• Key sectors like electronic goods, meat, dairy, pharmaceuticals, and engineering goods showed positive export growth.

Why It Matters: India's trade deficit widened in December 2025 due to surging imports, despite efforts to boost and diversify exports.