Exports rise an anaemic 1.87% in Dec, trade deficit at $25.04 bn

Shipments to the US ‘holding up’, says govt

- MUKESH JAGOTA

INDIA'S MERCHANDISE EXPORTS grew for the second straight month despite challenges of high additional tariffs in its biggest market, the US, expanding by 1.87% on year to $38.5 billion.

The drivers of the growth were electronics where the exports grew 16.78% to $4.17 billion, pharmaceutical shipments, which were up 5.65% to $2.63 billion and engineering goods, which saw a growth of 1.28% to $10.98 billion.

Despite the 50% tariff by the US on Indian imports, the exports to US are still holding up, somewhat. In December, India’s merchandise exports to the US were $6.89 billion compared to $7.01 billion in December of last year and $6.98 billion in November.

Sequentially, exports to the largest trading partner have been declining since May, except for November.

Merchandise trade deficit widened slightly to $25.04 billion in December as imports rose. In November 2025, the deficit was $24.53 billion, and December 2024, it stood at $21.9 billion.