India's Trade Deficit Widens in July Amid Global Uncertainties

India's trade deficit increased to USD 11.72 billion in July 2025 as imports rose faster than exports. While exports grew to USD 68.25 billion, imports reached USD 79.99 billion. The Production Linked Incentive scheme and free trade agreements aim to boost exports and reduce import dependency.

The trade deficit of India experienced a notable rise, reaching USD 11.72 billion in July 2025, compared to USD 10.10 billion in the same period last year. This expansion is attributed to a sharper increase in imports against exports, reports the Commerce & Industry Ministry.

Data indicates overall exports were at USD 68.25 billion in July 2025, compared with USD 65.31 billion the previous year. Conversely, imports grew to USD 79.99 billion, up from USD 75.41 billion. These figures emerge amid volatile global trade conditions and the imposition of 50 percent reciprocal tariffs by the U.S.

Commerce Secretary Sunil Barthwal emphasized the resilience of Indian exports despite global policy uncertainties. He highlighted significant growth in sectors like engineering, electronics, and pharmaceuticals. Meanwhile, India’s fiscal initiatives, including the Production Linked Incentive scheme, continue supporting export expansion, setting an ambitious target of USD 1 trillion in exports for 2025-26.