India's Trade Deficit Widens to $25 Billion in December as Imports Surge

• India's merchandise trade deficit reached $25.04 billion in December 2025, a slight increase from $24.53 billion in November.
• Merchandise exports saw a modest 1.8% year-on-year growth, totaling $38.51 billion, showing resilience despite global challenges.
• Imports surged by 8.7% to $63.55 billion, significantly contributing to the widened trade gap.
• Services exports provided a cushion with a surplus of $18.12 billion, reaching $35.50 billion in December.
• India aims to diversify export markets and expects combined goods and services exports to exceed $850 billion in FY26.

Why It Matters: India's trade deficit expanded in December due to robust import growth outpacing modest export recovery.