FX.co ★ India Trade Deficit Inches Lower

India reported a trade deficit of $21.88 billion in May 2025, marking a steady position compared to the $23.8 billion gap recorded during the same period the previous year. This stability contrasts with the fluctuations seen in trade balances of other Asian economies, which are often affected by the US's shifting tariff policies. Imports decreased slightly by 1.7%, totaling $60.61 billion, likely influenced by subdued energy prices, which form a significant component of India's imports. Conversely, exports declined by 2.2%, reaching $38.73 billion. Since the beginning of the fiscal year in April, exports to the US have risen to $17.25 billion from $14.17 billion in the same period last year, indicating that US tariff threats have had minimal impact on trade flows.