New Delhi, Jan. 15 -- NEW DELHI: India's merchandise trade deficit widened in December following a sharp rise in imports as demand for Indian goods in the US remained resilient despite steep 50% tariffs imposed on most shipments.

The goods trade deficit rose to $25.04 billion in December, up from $24.53 billion in the previous month and $20.63 billion in December 2024, according to provisional data released by the Ministry of Commerce and Industry on Thursday.

Exports to the US, India's largest overseas market, rose month-on-month in December, indicating that demand held up despite higher tariffs, even as exporters faced pricing and margin pressures.

However, bilateral trade between India and China also increased, with imports rising s...