India’s May Trade Deficit Narrows to $21.88 bn

Even as global trade faced challenges from US tariffs and uncertainties in policy, India’s trade deficit fell to $21.88 billion in May 2025 from $26.42 billion in April. As per the data released by government, the merchandise exports fell to $38.73 billion in May 2025 which is 2.17% less than the previous year.  

Data also suggested a decline in imports which fell to 1.7 per cent, at $60.61 billion as against $61.68 billion in the same period last year. Meanwhile, India posted a 5.75% cumulative growth in trade for April-May 2025 over the same period last year. Exports of electronic goods, including mobile phones, recorded the sharpest rise of 54 per cent in May. With pharmaceuticals, Marine products and textiles drawing attention with increase in their exports rate.

Sunil Barthwal Secretary, Commerce Ministry says that India is focusing on 6 sectors as part of its strategy which account for 75 percent of global imports. Barthwal also said that India's focus is on those countries which account for 65 percent of global imports. He further stressed on the that despite a challenging global environment and a subdued outlook from the World Trade Organization (WTO), India’s trade continues to show structural strength.