India’s goods trade deficit at a 42-month low on reduced gold, silver and crude imports

India's goods trade deficit hits 42-month low at $14.05 billion in February 2025, with gold, silver, and crude imports decreasing.

India’s goods trade deficit was down to a 42-month low of $14.05 billion as imports of gold, silver and crude dipped in February 2025, according to data from the Ministry of Commerce and Industry. The difference between exports and import of goods was $22.9 billion in January 2025. In February 2024, the merchandise trade deficit stood at $19.5 billion.

India’s gold and silver imports were at $2.7 billion, which is the lowest since June 2024, when the value was $2.5 billion. As for crude and petroleum, imports were at $11.89 billion which was the lowest since July 2023, when the value was at $11.81 billion. 

India exported goods worth $36.9 billion in February 2025. Imports, however, slipped to a 22-month low of $50.9 billion. 

On a year-on-year basis, exports dipped 10.84% in February 2025. “A portion of the YoY decline in merchandise exports can be attributed to the base year effect related to the leap month,” Aditi Nayar, chief economist at credit rating agency ICRA, wrote in her statement. Imports however shrunk 16.3% in the reporting month as against the same period last year.

“The trade deficit was also significantly lower than the average of over $23 billion during the first 10 months of FY2025. Given this, we now expect the current account to witness a surplus of around $5 billion in Q4 of FY2025, equivalent to around 0.5% of the GDP, in the ongoing quarter,” said Ms. Nayar.

India exported services worth $35.03 billion and imported services worth $16.55 billion in February 2025. These numbers were $28.33 billion and $15.23 billion respectively in February 2024. 

The trade data assumes significance at a time when India’s currency is depreciating and uncertainties persist from U.S. trade policy. “India is proactively engaged with the U.S. to address concerns of both countries and expand trade to $500 billion,” Trade Secretary Sunil Barthwal said.