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Exports

India's Trade Deficit Widens Amid Global Tariff Disruptions

Strategic Insights

— 2 min read

India's trade deficit ballooned to $26.42 billion in April, a sharp increase from $21.54 billion in March, as global trade and supply chains continued to grapple with the fallout of US President Donald Trump's tariff hikes. Imports surged 19.12% to $64.91 billion in April, while exports rose 9.03% year-over-year to $38.49 billion, with services trade exports increasing to $35.31 billion. Economists had forecast a $20 billion trade deficit for April, according to a Reuters poll. India's engineering goods exports reached $9.51 billion in April, while electronic goods exports rose to $3.69 billion.

Key Takeaways:

  • India's trade deficit widened to $26.42 billion in April, up from $21.54 billion in March, due to a surge in imports and relatively slower exports growth.
  • Imports increased 19.12% to $64.91 billion in April, driven by higher demand for non-oil goods and commodities.
  • Exports grew 9.03% year-over-year to $38.49 billion, led by strong services trade exports, which rose to $35.31 billion.
  • India's engineering goods exports reached $9.51 billion in April, up from $8.55 billion in the same period last year.
  • Electronic goods exports also increased, reaching $3.69 billion in April, up from $2.65 billion in the same period last year.
  • The US announced a 26% tariff on Indian goods in April, but later put the levies on hold for 90 days until July 8.
  • India has proposed to reduce its average tariff differential with the US from around 13% to under 4%, according to a report by Reuters.
  • India has offered to bring duties on 60% of tariff lines down to zero under a proposed trade deal with the US.

Statistics:

  • India's trade deficit in April: $26.42 billion
  • Imports in April: $64.91 billion (up 19.12% year-over-year)
  • Exports in April: $38.49 billion (up 9.03% year-over-year)
  • Services trade exports in April: $35.31 billion (up 17.45% year-over-year)
  • Services trade imports in April: $17.54 billion (up 5.30% year-over-year)
  • Engineering goods exports in April: $9.51 billion (up 10.84% year-over-year)
  • Electronic goods exports in April: $3.69 billion (up 39.25% year-over-year)
  • Gold imports in April: $3.10 billion (up 5.17% year-over-year)

Sources:

  • Reuters
  • Government of India
  • Commerce Secretary Sunil Barthwal
  • US President Donald Trump
  • Reuters report, "India proposes to cut tariff differential with US to under 4%: Report" (May 9)

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