New Delhi, July 13 -- India's merchandise trade deficit likely narrowed modestly to USD 20.7 billion in June 2025, down from USD 21.9 billion in the previous month, driven by easing crude oil prices, muted gold imports, and a shift in sourcing strategy that helped offset global commodity volatility, said a report by Union Bank of India (UBI).

The report added that a sharp but temporary decline in global crude prices following a ceasefire between Israel-Iran, coupled with rising OPEC+ output, helped improve India's oil trade balance.

Although Brent crude prices recovered swiftly to an average of USD 69.80/bbl in June from USD 64.01/bbl in May, the broader supply outlook helped prevent a sharp increase in import costs.

India imported 4.6...