India’s Trade Dynamics in FY25 Surplus with US Widens, Deficit with China Deepens

India’s foreign trade figures for FY2024–25 reflect divergent trends with major global partners. While exports to the United States rose significantly, widening the trade surplus, the trade deficit with China deepened further due to higher imports and declining exports. China retained its top position as India’s largest import source, while the US continued to be the leading destination for Indian exports.

Key Highlights

Trade with the United States (FY25)

• Exports to the US: $86.5 billion (↑ 11.59% from $77.5 billion in FY24)
• Imports from the US: $45.3 billion (↑ 7.44% from $42.19 billion)
• Trade surplus with the US: $41.2 billion (↑ from $35.4 billion in FY24)

Trade with China (FY25)

• Exports to China: $14.25 billion (↓ 14.49% from $16.66 billion in FY24)
• Imports from China: $113.45 billion (↑ 11.52% from $101.7 billion)
• Trade deficit with China: $99.2 billion (↑ from $85.1 billion in FY24)
• Key import drivers from China: Electronics, EV batteries, solar cells, industrial inputs
• Commentary: PLI schemes are pushing demand for imported components from China.

Top Export Destinations for India in FY25

Rank	Country	Export Value (in $ Billion)	Growth Rate (%)
1	United States	86.5	11.59%
2	United Arab Emirates (UAE)	36.6	2.84%
3	Netherlands	22.7	1.75%
4	United Kingdom	14.5	12%

Top Import Sources for India in FY25

Rank	Country	Export Value (in $ Billion)	Growth Rate (%)
1	China	113.45	11.52%
2	Russia	63.8	4.39%
3	United Arab Emirates (UAE)	63.4	32%
4	United States	45.3	7.44%