India's merchandise trade deficit widened to $25.04 billion in December 2025, according to government data released on January 15, 2026. This figure represents an increase from the $24.53 billion recorded in November, which was a five-month low. The expansion in the trade gap was primarily attributed to a significant surge in imports. Merchandise imports in December 2025 rose to $63.55 billion, compared to $58.43 billion in December 2024. This indicates robust domestic demand for goods such as crude oil, electronics, and capital goods. Concurrently, merchandise exports also registered a modest growth, increasing by 1.86% year-on-year to $38.51 billion in December 2025. Key sectors contributing to this export growth included electronics, engineering goods, marine products, meat, dairy, and pharmaceuticals. Commerce Secretary Rajesh Agrawal highlighted that India's exports are recording positive growth despite global uncertainties and projected total exports to exceed $850 billion in the current fiscal year. Beyond merchandise trade, India maintained a strong services trade surplus. Preliminary estimates indicate that services exports stood at $35.50 billion and imports at $17.38 billion in December, resulting in a services trade surplus of $18.12 billion. When combining both merchandise and services, India's overall trade deficit widened to $6.92 billion in December 2025, a significant increase from $1.46 billion in the same month last year. This comprehensive data reflects a dynamic shift in India's trade landscape, with rising imports exerting pressure on the overall trade balance.