India's Exports Show Resilience with 1.8% Growth in December
India's goods exports managed to grow by 1.8% in December 2025, reaching $38.51 billion. This growth occurred despite facing steep 50% tariffs from the United States and ongoing uncertainty around a bilateral trade deal. The Commerce and Industry Ministry released the data, highlighting a positive trend in foreign trade.
Key Drivers: China and UAE Lead Export Surge
Exports to China saw a remarkable increase of 67.35% during the month. Shipments to the United Arab Emirates also rose by 14%. Hong Kong recorded a significant jump of 61.28% in exports from India. These gains helped offset a 1.8% decline in exports to the US, which fell to $6.8 billion from $7 billion in December 2024.
Commerce Secretary Rajesh Agarwal expressed satisfaction with the export performance to China, calling it "welcome". He noted that goods exports have demonstrated resilience against external challenges. Agarwal projected that total exports, including both goods and services, could reach $850 billion in the current financial year.
Trade Deficit Widens as Imports Grow Faster
While exports grew modestly, imports surged by 8.7% to $63.55 billion in December. This increase from $58.43 billion in the same month last year led to a widening trade deficit. The deficit expanded by 21% to $25 billion, compared to $20.63 billion in December 2024.
Imports from China also rose substantially, climbing 20% to $11.7 billion. Key products driving India's exports to China included oil meals, marine products, telecom instruments, and spices.
Industry Leaders Express Optimism
The Federation of Indian Export Organisations (FIEO) voiced strong optimism about India's foreign trade growth. FIEO President S C Ralhan stated that the continued expansion of exports from April to December 2025 is particularly encouraging. He attributed this success to government initiatives aimed at boosting exports, including policy continuity, export facilitation measures, and improved logistics.
"The sustained and broad-based growth reflects the effectiveness of government initiatives," Ralhan emphasized.
Apparel Sector Shows Modest Growth
A Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), commented on the performance of the readymade garment (RMG) sector. He noted a modest growth of 2.89% in December 2025, highlighting the industry's resilience in a challenging global environment.
"Indian apparel exporters have managed to hold ground through product diversification, improved compliance, and a stronger focus on value-added segments," Sakthivel said.
He expressed cautious optimism about growth prospects for the current year, citing India's reliable supply chain and compliance standards as competitive advantages.
India-US Trade Deal Nears Finalization
Commerce Secretary Agarwal provided an update on the long-pending India-US trade agreement. He indicated that both countries are "very near" to finalizing the deal. However, he refrained from setting a specific deadline, stating that the announcement would come when both sides feel ready.
"It's very near, but we cannot put a deadline because that will happen when both sides are ready," Agarwal told reporters in New Delhi.
The December trade data demonstrates India's ability to navigate global trade challenges while pursuing growth in key markets. Industry and government officials remain hopeful about maintaining momentum in the coming months.
