Trade deficit edges up

US president's decision to double tariffs to 50% on certain Indian goods from late August has hit shipments of products such as textiles, chemicals and some food items, though overall exports have since stabilised

- PRESS TRUST OF INDIA

The country's exports grew 1.87 per cent to $38.5 billion in December last year due to global economic uncertainties, while an increase in imports led to a marginal widening of the trade deficit to $25 billion.

The country's exports in November 2025 was up by about 20 per cent.

Imports rose by 8.7 per cent to $63.55 billion during the month under review, according to government data released Thursday.

Trade deficit, difference between imports and exports, stood at $25.04 billion in December 2025 as against $24.53 billion in November last year and $22 billion in December 2024.

The major sectors which witnessed deceleration in exports include petroleum products, gems and jewellery, rice, plastics, and leather products.

The global trade has been disrupted due to tariffs imposed by the US. On India, the Trump administration has levied a steep 50 per cent tariffs from August. This is impacting the country's outbound shipments from the labour-intensive sectors such as apparel.