Despite the 10% tariff imposed by the US in April, India’s merchandise exports rose by 9% during the month with exports to the US surging by 27%.Total exports during the month was at $38.5 billion, compared to $35.3 billion a year ago. Exports to the US surged to $8.5 billion in April 2025 from $6.6 billion a year ago.
It must be noted that the US had announced a reciprocal tariff of 26% on Indian goods on 2 April this year, and a baseline tariff of 10% was imposed from 5 April. Later, the 26% tariff was put on hold for 90 days.
Releasing the April 2025 trade numbers, commerce secretary Sunil Barthwal said Indian exports demonstrated resilience despite global supply chain disruptions and increase in insurance cost. He attributed the strong April numbers to government strategies focusing on 30 key countries and six major commodity sectors, which he says have proven effective.
When asked why exports to the US increased despite the baseline tariff coming into force, Barthwal said when tariffs affect one country, others may gain relatively. “Our export advantage may grow if tariffs remain higher for others,” he added, though he declined to pinpoint the exact factors (for surge in US exports) without comprehensive analysis.
Imports also grew by a strong 19% year-on-year to $65 billion during the month compared to $54.5 billion a year ago. Trade deficit in April widened to $26.5 billion compared to $19.2 billion a year ago.
Services showed even better numbers with exports growing 17% to $35.31 billion in April 2025 compared to $30.2 April 2024. Services imports grew at a moderate 5% to $17.5 billion.
Engineering products, which was the biggest exporting item in April, showed an 11.3% growth year-on-year, petroleum products exports grew by 4.68% while electronics exports jumped 40% to $3.7 billion during the month. Among electronics items, smartphones account for the biggest chunk of exports from India.
Gems and Jewellery, another top exports from India, also posted double digit (11% growth during the month).
Meanwhile, petroleum imports rose by a significant 26% to $20.7 billion during the month. Gold imports grew at a moderate 5% to $3.1 billion.