India’s trade deficit has narrowed by 11% in the latest fiscal quarter, thanks to a significant rise in exports of pharmaceuticals, electronics, and textiles. The Ministry of Commerce and Industry reported that exports touched a record $125 billion, driven by robust demand from the US and Middle East. Pharmaceutical shipments rose 18% year-on-year, while textile exports benefited from diversified sourcing away from China. The electronics sector saw strong performance, bolstered by incentives under the Production-Linked Incentive (PLI) scheme. Imports, meanwhile, remained steady, with reductions in crude oil and gold purchases balancing out increases in semiconductor and defense components. Economists view the development as a positive sign for India’s economic recovery and currency stability. The government has hinted at new bilateral trade agreements that could further boost export growth. However, challenges remain in global shipping costs and regulatory hurdles. The narrowing deficit strengthens investor confidence and improves macroeconomic fundamentals ahead of the next Union Budget.