India's Dairy and Poultry Exports Witness Notable Growth Amid Trade Deficit

India's agricultural exports provided a significant, albeit selective, boost to the nation's trade performance in October 2025. According to provisional data from the Commerce Ministry, while overall merchandise exports fell by 11.8% year-on-year to USD 34.38 billion, the farm and food sector showed resilience. This sector registered some of the largest month-on-month gains of the financial year, defying a general decline in industrial exports.

Particularly notable were exports of meat, dairy, and poultry products, which rose by 30.87% to USD 584.5 million. This growth was primarily attributed to stable demand from markets in West Asia and parts of Southeast Asia. Additionally, marine products, a major component of India's agri-linked exports, increased by 11.08% to USD 899 million, bolstered by strong shrimp demand in the US and steady pricing in the EU and East Asia.

Despite these gains, analysts caution that the growth is concentrated in specific commodities, driven more by favorable global price trends than by structural improvements. An agricultural-exporter lobby highlighted the selective nature of this resilience, noting that the overall trade cycle, heavily reliant on engineering goods and petroleum, remains pressured.

India's trade deficit widened to USD 21.8 billion in October, nearly double the USD 9.05 billion deficit recorded the previous year. This was due to a 15% increase in imports, largely from gold, electronics, machinery, and non-ferrous metals. Economists emphasized that while agricultural exports are crucial, they cannot offset the slowdown in high-value industrial exports.

The future of India's dairy and agribusiness sectors remains tied to external factors, including freight costs and trade negotiations with partners like the EU and the Gulf. While agricultural exports have offered temporary relief, the data highlights ongoing challenges in the broader trade landscape.