India’s trade deficit widened sharply to $21.54 billion in March 2025, compared to $15.34 billion a year earlier, as per data released on Tuesday. The widening gap was driven by a significant 11.4% surge in imports, which rose to $63.51 billion from $57.03 billion in March 2024.
Meanwhile, exports saw only a modest rise of 0.7%, increasing to $41.97 billion from $41.69 billion year-on-year. The slower pace of export growth relative to the spike in imports has put pressure on the country’s trade balance.
The figures underscore the challenges facing India’s external sector, especially amid global uncertainties and elevated commodity prices. A sharp rise in imports—potentially due to increased energy, gold, and machinery purchases—combined with tepid export momentum, has led to the largest monthly trade deficit in several months.
As trade imbalances widen, the data may influence upcoming fiscal and monetary policy discussions, particularly with inflation and global trade dynamics under close watch.
