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31.03.202611:30:00UTC+00India’s Trade Deficit Narrows to USD -87.4B in Q3 2025, Easing from Record Low

India’s trade balance improved in the third quarter of 2025, with the deficit narrowing to USD -87.400 billion, according to data updated on 31 March 2026. This marks an easing from the previous reading of USD -93.600 billion recorded in the fourth quarter of 2025.

The shift from a deeper deficit in Q4 2025 to a relatively smaller shortfall in Q3 2025 suggests some moderation in external imbalances over that period. While the trade balance remains firmly in negative territory, the reduced gap points to a partial relief on the external sector compared with the more pronounced deficit seen later in the year.

Market participants and policymakers will be watching subsequent releases closely to see whether the Q3 2025 figure represents the start of a stabilizing trend in India’s trade position or a temporary improvement within a broader pattern of large external shortfalls.

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