MoC&I Data: India’s Trade Deficit Narrows Sharply to USD 3.51 Billion in June 2025 (Y-o-Y)

Current Context: According to Ministry of Commerce and Industry (MoC&I) data released on July 15, 2025, India’s overall trade deficit (merchandise and services) narrowed sharply to USD 3.51 billion in June 2025, down from USD 7.30 billion in June 2024.

Key Drivers Behind the Improvement

• Exports surged to USD 67.98 billion, marking a 6.5% year-on-year growth, driven by strong global demand and robust services sector performance.
• Imports remained stable, rising marginally to USD 71.50 billion, aided by softening commodity prices.
• In June 2025, India’s goods exports remained flat at USD 35.14 billion, nearly unchanged from USD 35.16 billion in June 2024.
• Electronics exports led the charge with a 46.9% increase, followed by pharmaceuticals, marine products, and engineering goods.
• Services exports rose to USD 32.84 billion, while imports stood at USD 17.58 billion, resulting in a services surplus of USD 15.26 billion, offsetting 81% of the merchandise deficit.
• This sharp narrowing reflects India’s resilient export strategy, supported by PLI schemes, FTA negotiations, and a target of USD 1 trillion exports for FY26.

Question:

Q.1 According to the Ministry of Commerce and Industry (MoC&I) data released on July 15, 2025, what was India’s overall trade deficit (merchandise + services) in June 2025?
a) USD 7.30 billion
b) USD 5.00 billion
c) USD 3.51 billion
d) USD 15.26 billion

Answer: c) The overall trade deficit narrowed to USD 3.51 billion in June 2025, down from USD 7.30 billion in June 2024, as per MoC&I data.