Trade Deficit in India Expected to Reach $300 Billion

India’s merchandise trade deficit could rise to $300 billion (30 trillion rupees) in the 2025–26 fiscal year, up from $287 billion last year, according to a report by ICICI Bank. The slowdown in demand from major markets—excluding the United States—has led to a decline in Indian exports. The surge in U.S. export demand is largely due to advance orders placed ahead of potential tariff barriers. On the other hand, strong domestic consumption is likely to fuel a rise in imports.