In December 2025, India's merchandise trade gap widened significantly to $25 billion, up from $20.6 billion in the same month of the prior year, setting a record for the steepest trade deficit ever recorded for December. Despite the decline in global energy prices and the impact of a weak rupee, imports surged by 8.8% to $63.6 billion. This increase occurred even as the United States exerted pressure on India to reduce its purchases of Russian oil, which likely raised energy costs for Indian refiners. On the other hand, exports experienced a modest growth of 1.8%, reaching $38.5 billion. Several key industries faced challenges due to the imposition of 50% tariffs by the US. India remains one of the few major economies yet to finalize a trade agreement with the White House, exacerbating the pressure on its export sector.