India’s trade deficit narrowed sharply after a surprise jump in exports to the United States, offering relief amid global economic uncertainties. The unexpected rise in shipments to India’s largest trading partner helped offset weak demand in other major markets and strengthened overall export performance.
Official data showed that exports to the US rose significantly during the period, driven by strong demand for engineering goods, pharmaceuticals, electronics, textiles, and gems and jewellery. The surge helped contain the trade gap despite continued volatility in global commodity prices and geopolitical headwinds.
Economists said the improvement reflects India’s growing competitiveness in key sectors and the benefits of supply chain realignments, with American companies increasingly sourcing from India. A relatively stable rupee and improved logistics also supported export growth.
While imports remained elevated due to crude oil and capital goods purchases, the faster pace of export growth helped narrow the overall trade deficit. Analysts caution, however, that sustaining this momentum will depend on global demand conditions, especially in the US and Europe.
The latest figures have raised cautious optimism that India’s external trade position could remain resilient in the coming months, supported by diversified exports and stronger engagement with key markets like the United States.
