India’s trade deficit with FTA partners widens 59% in April-June: Niti Aayog

However, shipments from sunrise sectors such as electronics have expanded their global footprint, the report said

• India's trade deficit with FTA partners rose 59.2 percent April-June 2025
• Electronics exports grew 47 percent, now over 11 percent of total exports
• India failed to meet ASEAN trade deal renegotiation deadline for end-2025

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India’s trade deficit with nations it has signed free trade agreements with has risen significantly between April and June period of 2025, compared to the same period of the previous year, the Indian Express said on January 7, citing a Niti Aayog report.

This comes at a time when New Delhi is trying to sign trade deals various countries to diversify its exports and soften the blow caused by high US tariffs on Indian goods, the report said.

However, shipments from sunrise sectors such as electronics have expanded their global footprint, the newspaper said.

The Niti Aayog report, released on January 6, said the trade deficit with its FTA partners jumped 59.2 percent between the April and June of last year. This was mainly driven by imports, which registered a growth of 10 percent to $65.3 billion, and exports that saw a fall of 9 percent to $38.7 billion.

India signed free trade agreements with Oman, New Zealand and the United Kingdom in 2025, and is currently engaged in negotiations with a range of partners including the European Union, the United States, Australia, Bahrain, the Gulf Cooperation Council (GCC), the Eurasian Economic Union (EAEU), Canada and the Southern African Customs Union (SACU). In addition, New Delhi is exploring the possibility of entering into a Preferential Trade Agreement (PTA) with Brazil and Israel.

The report noted a distinct structural shift in India’s export performance during the period, marked by a steep fall in petroleum exports alongside a sharp rise in electronics shipments. Electronics stood out as the fastest-growing segment, posting a 47 per cent year-on-year increase and accounting for more than 11 per cent of total exports, a trend that Niti Aayog said points to India’s increasing integration into global electronics supply chains.

The report also attributed the expansion of India’s trade deficit to a decline in exports to the Association of Southeast Asian Nations (ASEAN).

While India has been seeking to rework the existing trade agreement with ASEAN, the two sides failed to meet the end-2025 deadline for concluding the renegotiation. Separately, ASEAN and China finalised an upgraded free trade agreement in October last year.