India’s trade deficit widened slightly last month, data showed, which showed that US exports actually increased in the current fiscal year despite 50% tariffs.
Exports increased from $38.13 billion in November to $38.51 billion in December. Imports increased from $62.66 billion to $63.55 billion. This is equivalent to a trade deficit of $25.04 billion, compared to $24.53 billion last month.
“US exports have grown year-on-year in the first nine months of the (fiscal) year,” India’s Commerce Secretary Rajesh Agarwal said. India is on track to generate total exports of over $850 billion in the fiscal year ending March 31, 2026.
Meanwhile, India’s services trade remained in surplus – $35.50 billion in exports while $17.38 billion in imports. This is a trade surplus of $18.12 billion.
India’s push to diversify exports toward China, Russia and the West Asia, supported by incentives and planned trade agreements including with the EU, has boosted shipments after US President Donald Trump raised tariffs on some Indian goods to 50% in late August.
India and the US are discussing a bilateral trade deal after talks failed last year due to a communication breakdown between the two governments.
