Tariffs? No Problem! India’s Exports To US Surge 22% To $33.53 Billion, Even As Trade Deficit Widens

India’s overall trade deficit (merchandise and services combined) widened to USD 11.72 billion in July 2025, up from USD 10.10 billion in the same month last year, as imports grew faster than exports, according to data from the Commerce & Industry Ministry.

Exports in July stood at USD 68.25 billion, rising from USD 65.31 billion in July 2024. Imports, however, grew at a sharper pace, reaching USD 79.99 billion compared with USD 75.41 billion a year earlier.

India’s Exports To US 

Notably, exports to the United States, India’s largest trading partner, rose sharply despite the recent announcement of 50% reciprocal tariffs by US President Donald Trump.

In the April–July 2025 period, shipments to the US jumped 22% to USD 33.53 billion, up from USD 27.57 billion a year earlier, underscoring the resilience of Indian exports even amid escalating trade tensions.

The figures come in the backdrop of the 50 per cent reciprocal tariffs announced by US President Donald Trump, which targeted Indian goods. Despite this, Commerce Secretary Sunil Barthwal said India’s export performance remained strong.

“Despite an uncertain global policy environment, exports of both merchandise and services for July and for April to July have grown substantially and are much higher than the global export growth,” Barthwal noted.

He highlighted that engineering goods, electronic goods, gems and jewellery, pharmaceuticals, and organic and inorganic chemicals were the key drivers of merchandise export growth in July.

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Production Linked Incentive (PLI) Scheme

The government attributes part of this resilience to its Production Linked Incentive (PLI) scheme covering 14 sectors, including electronics, telecom, and EV batteries, which has helped boost competitiveness, attract investments, and integrate India into global supply chains.

While July saw the deficit widen, recent months had shown improvement. In June, the overall trade deficit narrowed sharply to USD 3.51 billion from USD 7.30 billion a year earlier, and in May, it fell to USD 6.62 billion from USD 9.35 billion.

India has set an ambitious target of USD 1 trillion in exports for FY26, with recent free trade agreements with the UK and UAE expected to provide further momentum.