India’s trade deficit widened a little last month amid data that showed US exports actually increased in the ongoing fiscal despite 50% tariffs.
Exports rose to $38.51 billion in December from $38.13 billion in November. The imports increased to $63.55 billion from $62.66 billion. That equated to a trade deficit of $25.04 billion, versus $24.53 billion in the month prior.
“US exports have grown on-year in the first nine months of the (fiscal) year,” India’s Commerce Secretary Rajesh Agrawal said. India is on track to clock total exports of more than $850 billion in the fiscal ending 31 March 2026.
Meanwhile, India’s services continued to be a trade surplus—$35.50 billion in exports versus $17.38 billion in imports. That’s a trade surplus of $18.12 billion.
India’s push to diversify exports towards China, Russia and West Asia, backed by incentives and planned trade pacts, including with the European Union, has cushioned shipments after US President Donald Trump raised tariffs on some Indian goods to 50% in late August.
India and the US are holding discussions for a bilateral trade deal, after talks collapsed last year amid a breakdown in communication between the two governments.
