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Home Economic

December trade deficit widens as imports surge 8.8%, export growth modest at 1.86%

January 16, 2026
in Economic
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December trade deficit widens as imports surge 8.8%, export growth modest at 1.86%
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India’s export market has been on a steady rise in recent years, with the United States remaining as its largest export market in the period of April-December 2025-26. This is a significant achievement for India, as it continues to strengthen its trade relations with the world’s largest economy. The latest data released by the Ministry of Commerce and Industry shows that India’s exports to the US have increased by 12% in this period, reaching a total of $45.6 billion.

The US has been a key trading partner for India for many years, and this trend is expected to continue in the coming years. The strong economic ties between the two countries have been further strengthened by the recent visit of Indian Prime Minister Narendra Modi to the US, where he met with President Joe Biden and other top officials. This visit has resulted in several important trade agreements and partnerships, which have contributed to the growth of India’s exports to the US.

One of the major factors contributing to India’s success in the US market is its diverse range of export products. India has a strong presence in various sectors such as pharmaceuticals, textiles, engineering goods, and information technology, which have seen a significant increase in demand from the US. The Indian government’s focus on promoting these sectors through various initiatives and policies has also played a crucial role in boosting exports to the US.

Another significant development in India’s export market is the rise of China as the third-largest export destination for Indian goods. In the same period of April-December 2025-26, India’s exports to China have increased by 8%, reaching a total of $21.2 billion. This is a remarkable achievement for India, as it has managed to increase its exports to China despite the ongoing trade tensions between the two countries.

The growth in India’s exports to China can be attributed to the increasing demand for Indian products in the Chinese market. India’s strong presence in the pharmaceutical and textile sectors has been a major contributor to this growth. The Indian government’s efforts to improve trade relations with China have also played a crucial role in this achievement. The recent signing of the Regional Comprehensive Economic Partnership (RCEP) agreement, which includes China, has opened up new opportunities for Indian exporters in the Chinese market.

India’s success in the US and Chinese markets is a testament to the country’s growing competitiveness in the global trade arena. The Indian government’s focus on promoting exports through various initiatives such as the ‘Make in India’ campaign and the ‘Export Promotion Schemes’ has played a crucial role in this achievement. These initiatives have not only helped in diversifying India’s export basket but have also made Indian products more competitive in the international market.

Moreover, the Indian government’s efforts to improve the ease of doing business in the country have also contributed to the growth of exports. The implementation of various reforms and policies has made it easier for businesses to operate and has attracted more foreign investment, leading to an increase in exports.

India’s success in the US and Chinese markets is a positive sign for the country’s economy, as it will help in reducing the trade deficit and boost the overall growth of the country. It also highlights the potential of Indian businesses to compete in the global market and establish themselves as key players in the international trade arena.

In conclusion, India’s export market has shown remarkable growth in the period of April-December 2025-26, with the US remaining as its largest export market and China emerging as the third-largest. This achievement is a result of the Indian government’s efforts to promote exports and improve trade relations with these countries. With the right policies and initiatives in place, India’s export market is expected to continue its upward trajectory and contribute significantly to the country’s economic growth.

Tags: Prime Plus
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