India&rsquo;s merchandise trade deficit fell to $21.88 billion in May 2025 from $26.42 billion in April, signalling a healthier external sector. Compared to May 2024, the deficit also improved slightly from $22.09 billion.
Commerce Secretary Sunil Barthwal said, &ldquo;Despite global trade uncertainties, India has performed exceptionally well.&rdquo;
Electronic goods, especially mobile phones, saw a remarkable 54% year-on-year growth in exports, while chemicals and pharmaceuticals rose by 16% and 7.38%, respectively.
However, overall merchandise exports declined slightly by 2.17% to $38.73 billion in May, down from $39.59 billion a year earlier, amid ongoing geopolitical tensions. Imports also dipped 1.7% to $60.61 billion from $61.68 billion in May 2024.
On the services front, India posted a $14.65 billion surplus. Service exports stood at $32.39 billion, while imports were at $17.14 billion.
In the April-May period, total exports reached $77.19 billion and imports $125.52 billion.
Meanwhile, India&rsquo;s foreign exchange reserves surged by $5.17 billion to $696.66 billion for the week ending June 6, nearing the all-time high of $704.88 billion.
Gold reserves also rose slightly to $85.89 billion. Since 2021, the RBI has nearly doubled its gold holdings, aligning with global trends amid rising geopolitical risks.
The robust forex reserves provide the RBI with greater flexibility to stabilise the rupee in volatile markets.
[Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed.]
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India’s Trade Deficit Narrows to $21.88 Billion in May

India's May trade deficit shrinks to $21.88B; strong exports, forex reserves near record high

India’s Trade Deficit Narrows to $21.88 Billion in May

India's May trade deficit shrinks to $21.88B; strong exports, forex reserves near record high

June 16, 2025 | 16:50 IST