India's goods trade deficit widens to $26 billion in April, exports up 9%

India's commerce ministry detailed the trade figures for April on May 15

India’s merchandise trade deficit in April widened to a five-month high of $26.42 billion from $21.54 billion in March as growth in imports doubled versus exports.

On a year-on-year basis, the trade gap in goods in the previous month was wider as well compared to $19.2 billion in April 2024.

While merchandise exports rose 9 percent on-year to $38.49 billion in April, goods imports increased 19 percent to $64.91 billion, according to provisional data released by commerce ministry on May 15.

"Indian exports are more resilient and the strategy to focus on 20 countries where we have 60 percent of our exports have worked," Commerce Secretary Sunil Barthwal said.

"India will maintain this export momentum despite issues due to the external sector," he added.

The main drivers of Indian exports in April 2025 included electronic goods up nearly 40 percent on year, engineering goods, an increase of 11.3 percent, and gems and jewellery shipments, which rose nearly 11 percent.

The steeper increase in goods imports in April 2025 can be attributed to a jump in inbound shipments of petroleum products to $20.72 billion in April from $19 billion in March.

On services, exports are seen increasing to $35.31 billion as against $30.18 billion in same month last year, whereas, imports are expected to reach $17.54 billion, up from $16.76 billion in April 2024.

Total exports (merchandise and services) during April 2025 are estimated at $73.80 billion, a likely growth of 12.7 percent on year, while overall imports is seen at $82.45 billion, up 15.7 percent.

Therefore, India's overall trade gap was narrower versus its merchandise counterpart at $8.7 billion in the first month of the current financial year.