Exports rise 9% to $38.49 bn in April; trade deficit widens to $26.42 bn

India’s merchandise exports grew 9.03 per cent year-on-year to $38.49 billion in April, according to official data released on Thursday. Imports during the month rose 19.12 per cent to $64.91 billion, resulting in a trade deficit of $26.42 billion.

 

Commenting on the performance, Commerce Secretary Sunil Barthwal expressed optimism, saying he hopes India will continue to sustain the current export momentum.  India's oil imports rose to $20.72 billion in April from $19 billion in March. Gold imports fell to $3.1 billion in April from $4.4 billion the previous month. 

Notably, imports from Russia grew by 17.7 per cent to $6.23 billion in April this year. Russia is a crude oil source for India. Further, the data showed that the country's exports to China too rose to $1.41 billion in April from $1.25 billion in the same month last year.

 

According to the data, the top five export destinations include the US, UAE, Australia, Tanzania and Kenya. The top five import sources in April were the UAE, China, the US, Russia, and Ireland.

 

Global headwinds

The global trade landscape has faced disruptions, partly due to tariff actions by the US administration under President Donald Trump. In April, the US imposed a 26 per cent tariff on goods from India — a lower rate than those placed on China, Vietnam and Bangladesh.

 

India’s exports to the US rose to $8.42 billion in April, up from $6.61 billion in the same period last year.

 

These tariffs, described by the White House as reciprocal, were temporarily suspended for 90 days, until July 8, as negotiations continue. A separate agreement to pause tariffs on Chinese goods was reached last weekend. 

 

Significantly, the US is in talks with India to finalise a broader trade deal, with President Trump stating on Thursday that an agreement with New Delhi is near.