In December 2025, India’s merchandise exports showed a modest yet positive increase, rising by 1.87% to reach $38.5 billion. This growth indicates resilience in the country’s export sector despite ongoing global economic uncertainties. The data was shared by Rajesh Agrawal, the Commerce Secretary, highlighting how India’s trade is navigating complex international markets.

On the flip side, imports also climbed significantly in December, reaching $63.55 billion compared to $58.43 billion in the same month last year. This rise in imports led to a widened trade deficit of approximately $25 billion for December 2025. The growing gap between imports and exports reflects increased demand for raw materials and other goods needed for domestic consumption and production.

Looking at the bigger picture, India’s cumulative exports from April to December 2025 have grown by 2.44%, reaching about $330.29 billion. This steady growth feeds optimism among policymakers and trade experts that the total export figures — including goods and services — for the current fiscal year could surpass $850 billion. Such milestones would be significant in supporting the country’s GDP and economic development goals.

Several factors contribute to this export growth. India has been leveraging diversification in markets and product ranges, reducing over-reliance on specific countries or sectors. Additionally, government initiatives aimed at boosting manufacturing and export competitiveness, such as the Production-Linked Incentive (PLI) schemes, are thought to play a crucial role in supporting export volumes.

However, the rising import bill indicates growing internal demand and may also reflect inflationary pressures on commodities and intermediate goods. This dynamic often leads to a trade deficit but can also signal healthy economic activity and industrial expansion within the country.

For investors and market watchers, these trade figures provide valuable insights. The modest export growth amid global volatility hints at underlying strengths in India’s manufacturing and service sectors, while the widening trade deficit calls for mindful monitoring of currency and fiscal policies.

Moreover, sector-specific developments in industries like pharmaceuticals, engineering goods, and electronics have contributed positively to exports. On the export front, diversification into newer markets, including parts of Africa and Latin America, is also helping counterbalance challenges in traditional markets.

As global economic conditions remain uncertain with fluctuating demand and supply chain issues, India’s ability to maintain export growth is an encouraging sign. Policymakers continue to focus on improving trade infrastructure, reducing logistical costs, and enhancing ease of doing business to sustain this momentum.

In conclusion, while December 2025’s export growth of 1.87% may seem modest, it underscores a steady upward trend that aligns with India’s broader economic ambitions. The continued push toward diversification, quality enhancement, and competitive production positions India well on the global trade map as it strives to achieve higher economic growth and stability in its external sector.