Daily News - Thursday, 17 April 2025

Trade deficit with China is widest ever (mint)

⁠India recorded a trade deficit of $99.2 billion with China in the 2024/25 fiscal year, driven primarily by a surge in electronics goods and consumer durables imports, with total imports from China rising to $113.5 billion. In March, imports from China increased by over 25% year-on-year to $9.7 billion, while exports to China fell by 14.5% to $1.5 billion, contributing to a total of $14.3 billion in exports for the fiscal year. Experts warn that rising imports and India’s growing dependency on Chinese components for its electronics, pharmaceuticals, and engineering exports signal deeper structural issues in the economy, with further import increases expected as Chinese firms seek new markets. 

‘US tariffs graze India, but global risks loom’ (mint)

⁠Moody’s Ratings projects India’s GDP growth to slow slightly to 5.5–6.5% in 2025, down from an earlier estimate of 6.6%, due to weaker global demand and declining exports, particularly to the US. India’s trade surplus with the US rose by 16.6% in FY25, reaching $41.18 billion, despite facing higher tariffs on exports, which were raised to 27% in April by President Trump before a 90-day pause was announced. The report highlights India’s moderate exposure to US trade tensions, as exports to the US account for 6.6% of its nominal GDP, suggesting limited direct impact from the latest tariff hikes. 

Bangladesh restricts import of yarn from India via land (The Hindu)

⁠Bangladesh has restricted the import of yarn from India through land ports as of April 13, affecting nearly 32% of Indian yarn exports to the country that are routed via land, according to the Cotton Textiles Export Promotion Council. India exported $1.6 billion worth of cotton yarn and $85 million worth of manmade fibre yarn in 2024, and this restriction, coupled with India’s own withdrawal of a 2020 transhipment order on April 25, is expected to raise logistical costs for Indian textile mills, especially small and medium units in the north. Industry leaders warn the move will significantly impact India’s cotton yarn exports to Bangladesh, with shipments now being forced through costlier sea ports like Mundra, Thoothukudi, or Nhava Sheva. 

⁠Exports to US rise 11.5% to $86.5 bn (Financial Chronicle)

⁠India’s exports to the US rose by 11.59% in FY25, reaching $86.5 billion, which contributed to a widening trade surplus of $41.2 billion, up from $35.4 billion in FY24. In contrast, imports from China grew by 11.52%, pushing the trade deficit with China to $99.2 billion, up from $85.1 billion in FY24, as demand for electronics, EV batteries, and solar cells drove imports. Exports to China declined by 14.49% to $14.25 billion, while India’s other major export destinations included the UAE at $36.6 billion, the Netherlands at $22.7 billion, and the UK at $14.5 billion. 

⁠Gold scales fresh high of ₹98,100 (Financial Chronicle)

Gold prices in India soared to an all-time high of ₹98,100 per 10 grams (99.9% purity), up ₹1,650 amid a global rush for safe-haven assets due to escalating US-China trade tensions, with gold registering its steepest single-day jump of ₹6,250 on April 11 and posting a 23.56% rise since January 1. On the Multi Commodity Exchange, June gold futures rose by ₹1,984 or 2.12% to ₹95,435 per 10 grams, while spot gold globally hit a record $3,318 per ounce before settling at $3,299.99. Silver prices also surged significantly by ₹1,900 to ₹99,400 per kg, reflecting robust investor demand driven by geopolitical uncertainty and stalled tariff negotiations.