India's trade deficit widens to USD 119 bn as imports outpace exports

India's exports reached USD 860.09 billion in FY 2025-26, a 4.22% rise. However, a faster 6.47% surge in imports to USD 970 billion caused the overall trade deficit to widen to USD 119.30 billion from USD 94.66 billion a year earlier.

India's exports surged by 4.22 per cent to USD 860.09 billion in the financial year 2025-26, while imports rose at a faster pace of 6.47 per cent to around USD 970 billion, leading to a widening of the overall trade deficit, according to data shared by Commerce Secretary Rajesh Agrawal.

Overall Trade Figures for FY26

The data further highlighted that the total exports stood at USD 860.09 billion in 2025-26 compared to USD 825.26 billion in 2024-25. Imports increased from USD 919.92 billion in the previous financial year to around USD 970 billion in 2025-26. As a result, the overall trade deficit (merchandise and services combined) widened to USD 119.30 billion in 2025-26 from USD 94.66 billion in 2024-25.

Merchandise and Services Trade Breakdown

Merchandise exports saw a modest rise to USD 441.78 billion in 2025-26 from USD 437.70 billion in the previous year. Merchandise imports increased to USD 774.98 billion from USD 721.20 billion, reflecting higher inbound shipments.

Services exports continued to remain a strong contributor, rising to USD 418.31 billion in 2025-26 from USD 387.55 billion in 2024-25. Services imports also increased to USD 204.42 billion from USD 198.72 billion.

Trade Balance Excluding Key Commodities

Data also showed that overall trade excluding petroleum and gems and jewellery maintained a balanced position. Exports in this category rose to USD 777.98 billion from USD 732.05 billion, while imports increased to USD 702.98 billion from USD 653.31 billion. The trade surplus, however, narrowed slightly to USD 75.00 billion from USD 78.74 billion by USD 3.74 billion.

Commodity-Specific Import Trends

Gold Imports

Among key commodities, gold imports saw a rise in value, even as the quantity declined. The value of gold imports increased from USD 58.01 billion in 2024-25 to USD 71.98 billion in 2025-26. However, the quantity of gold imports fell from 757.09 tons to 721.03 tons, indicating that the increase was largely driven by higher prices. The unit value of gold rose from USD 76,617.48 per kg to USD 99,825.38 per kg.

Silver Imports

Silver imports, on the other hand, recorded a sharp increase in both value and quantity. The value of silver imports rose significantly from USD 4.83 billion in 2024-25 to USD 12.05 billion in 2025-26. The quantity surged from 5,164.37 tons to 7,334.96 tons, the unit value also increased from USD 934.72 per kg to USD 1,642.93 per kg.

Historical Trade Deficit Overview

Over the longer term, data show that India's overall trade deficit has remained elevated. The deficit stood at USD 121.62 billion in 2022-23 and moderated to USD 78.39 billion in 2023-24 before rising again to USD 94.66 billion in 2024-25 and further to USD 119.30 billion in 2025-26. (ANI)

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