India’s trade deficit narrows to $18.78 Billion in June

India’s trade deficit fell to $18.78 billion in June, compared to $21.88 billion in May, according to data released by the Commerce and Industry Ministry on Tuesday.Merchandise exports were nearly unchanged at $35.14 billion, compared to $35.16 billion in June last year, while imports declined 3.71% to $53.92 billion from $56 billion a year ago.
In services, India registered an estimated surplus of $15.62 billion, with exports at $32.84 billion and imports at $17.58 billion. Combined exports of merchandise and services stood at $67.98 billion, while combined imports were $71.50 billion, resulting in a net trade deficit of $3.51 billion for the month.
Commerce Secretary Sunil Barthwal reportedly stated global conflicts and economic uncertainty continue to impact Indian exports, adding that the government is working with exporters to address challenges related to shipping and insurance.
The trade data comes as India negotiates market access deals with the US and other partners. Washington is seeking wider access for its agricultural and dairy products, a sensitive issue for India, while New Delhi wants tariff concessions for labour-intensive sectors like textiles, leather, and footwear.India is also pressing for an exemption from former US President Donald Trump’s 26% tariffs, as last-stage talks aim to avoid higher duties. Trump announced plans to notify trading partners about tariff rates as early as Friday.
Meanwhile, a recent NITI Aayog report highlighted cautious resilience in Q3 FY25, with merchandise exports rising 3% year-on-year to $108.7 billion. The report noted strong growth in aircraft and spacecraft parts, which surged over 200%, driven by demand from Saudi Arabia, UAE, and the Czech Republic. High-tech merchandise exports, including electrical machinery and arms, have grown at a CAGR of 10.6% since 2014.

(Business Correspondent)