India’s Trade Gap Narrows to $20.7 Billion as Cheaper Oil, Sluggish Gold Imports Ease June Deficit

The merchandise trade deficit of India eased slightly to USD 20.7 billion in June 2025, down from USD 21.9 billion in May, according to a report by Union Bank of India (UBI). The moderation was attributed to falling crude prices, subdued gold imports and a recalibrated sourcing strategy that helped buffer the impact of global commodity fluctuations.
Oil imports dip amid shifting global dynamics
A short-lived decline in crude prices—following the temporary Israel-Iran ceasefire—alongside increased oil production by OPEC+ helped ease India’s oil-related import bill. Although Brent crude rebounded to USD 69.80/bbl in June, up from USD 64.01/bbl in May, the broader supply landscape remained favorable, preventing a sharp spike in costs.

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