India's merchandise exports experienced a modest increase of 1.8% in December 2025, reaching $38.51 billion, according to the Department of Commerce. This comes as imports surged to $63.55 billion, resulting in a trade deficit of $25 billion for the month. The trade deficit widened compared to November's five-month low of $24.53 billion.

Commerce Secretary Rajesh Agrawal acknowledged the global uncertainties but highlighted the positive growth in India's exports. He projected that total exports of goods and services could exceed $850 billion in the current fiscal year. During the April-December period, exports rose 2.44% to $330.29 billion.

The increase in imports was a key factor in the widening trade deficit. December 2025 imports climbed to $63.55 billion, compared to $58.43 billion in the same period last year.

Despite the widening deficit, certain sectors have shown strong export performance. Electronic goods have been a major contributor, with exports growing over 16%. Other sectors that have boosted shipments include pharmaceuticals, meat and dairy products, marine products, and engineering goods. India's strategy to diversify into new markets, such as Russia and the UAE, has aided the growth in the pharma and marine sectors. Meat, dairy, and poultry products registered a notable 30% surge.

Preliminary government estimates indicate a services trade surplus of $18.12 billion for December, with services exports at $35.50 billion and imports at $17.38 billion.

Exports to the United States, a key market for India, remain strong, with a growth of 9.75% in the first nine months of the fiscal year.