Driven by a sharp jump in exports to China and the UAE, India’s goods exports in December managed to post a 1.8 per cent growth despite steep 50 per cent tariffs and continued uncertainty around the India-US trade deal, data released by the Commerce and Industry Ministry showed.
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While goods exports in December grew 1.8 per cent to $38.51 billion compared to $37.80 billion, imports jumped 8.7 per cent to $63.55 billion compared to $58.43 billion in December 2024. The trade deficit widened by 21 per cent to $25 billion compared to $20.63 billion. Data showed that exports to the US declined 1.8 per cent to $6.8 billion compared to $7 billion, but shipments to China grew 67.35 per cent and to the UAE by 14 per cent. Exports to Hong Kong also rose by 61.28 per cent.
Commerce Secretary Rajesh Agarwal said that goods exports have managed to withstand external challenges and total exports (goods and services) are expected to touch $850 billion during the ongoing financial year.
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On the India-US trade deal, Agarwal said that India and the US are “very near” to finalising the trade agreement, and it would be announced when both sides are ready.
“It’s very near, but we cannot put a deadline because that will happen when both sides are ready, and they feel that this is the right time to announce,” he told reporters here.
Agarwal said that export growth to China is “welcome”.
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India’s exports to China were driven by several products, such as oil meals, marine products, telecom instruments and spices. Imports from Beijing also rose by 20 per cent to $11.7 billion in December, data showed.
The Federation of Indian Export Organisations (FIEO) has expressed strong optimism over the sustained and broad-based growth in India’s foreign trade, as reflected in the December 2025 trade data.
S C Ralhan, president, FIEO, said that the continued expansion of India’s exports during April–December 2025 is particularly encouraging given the volatility in global trade flows, and reflects the effectiveness of government initiatives aimed at boosting exports, including policy continuity, export facilitation measures, improved logistics.
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A Sakthivel, Chairman, AEPC, said, “The December 2025 export performance showing a modest growth of 2.89 per cent for the RMG sector reflects both the resilience and adaptability of our industry in a challenging global environment. While demand in key international markets such as the US has been uneven due to inflationary pressures and geopolitical uncertainties, Indian apparel exporters have managed to hold ground through product diversification, improved compliance, and a stronger focus on value-added segments.”
On the growth possibility this year, Sakthivel said, “Looking ahead, we are cautiously optimistic about the growth prospects of India’s RMG exports this year. With global demand expected to improve gradually, India is well-positioned to gain market share due to its reliable supply chain, compliance standards, and growing design capabilities. With sustained policy support and continued industry efforts, we are confident that the apparel sector will return to a stronger growth trajectory in the coming time.”
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