Winning Bizness Economic Desk

Mumbai. India’s merchandise exports in March 2025 stood at $41.97 billion (approximately ₹3.60 lakh crore), marking a marginal year-on-year increase of 0.7%. This reflects a modest recovery in outbound trade, though it has not been enough to offset the rising import bill. The increase in exports has come amid global trade volatility and a cautious uptick in demand from key markets.

Trade Deficit Widens Sharply by 34%

The country’s merchandise trade deficit jumped to $21.54 billion (₹1.84 lakh crore) in March, up 34% compared to February. In the previous month, the deficit was recorded at $14.05 billion (₹1.21 lakh crore). The widening gap has been largely attributed to a significant rise in imports, overshadowing the modest growth in exports.

Imports Jump Over ₹1 Lakh Crore from February

India’s imports in March rose to $63.51 billion (around ₹5.44 lakh crore), reflecting an 11.4% increase over the same month last year. Compared to February, imports surged by ₹1.02 lakh crore. In February, India imported goods worth ₹4.42 lakh crore, indicating strong demand for foreign goods, particularly in energy and machinery segments.

February Saw Lowest Trade Deficit in Nearly Three Years

The trade deficit in February 2025 was the lowest since August 2021, narrowing to $14.05 billion (₹1.21 lakh crore). During the month, exports stood at ₹3.20 lakh crore, a slight rise from ₹3.16 lakh crore in January. Imports in February had dipped sharply by 13.59% from January, amounting to ₹4.42 lakh crore, compared to ₹5.15 lakh crore in January — a fall of ₹73,000 crore.

Understanding Trade Deficit

A trade deficit occurs when a country’s imports exceed its exports during a specific period. In such a scenario, more money flows out of the country to pay for foreign goods than it earns from selling its products abroad. This situation, known as negative balance of trade, often reflects an economy's growing demand but can lead to pressure on the domestic currency and foreign exchange reserves over time.

Key Highlights:

• March 2025 trade deficit surged to ₹1.84 lakh crore, a 34% jump from February.
• Merchandise exports in March grew by 0.7% to $41.97 billion (₹3.60 lakh crore).
• Imports rose 11.4% year-on-year, touching $63.51 billion (₹5.44 lakh crore).
• February saw the lowest trade deficit since August 2021 at ₹1.21 lakh crore.
• Trade deficit reflects when a country imports more than it exports, leading to outflow of capital.