India’s merchandise trade deficit stood at US$282.8 billion in FY2024-25, driven by crude oil, electronics, and gold imports. Despite record exports of US$437.4 billion, imports surged to US$720.2 billion, keeping the gap wide. This article explores the historical roots, key products behind the imbalance, government initiatives like PLI and FTAs, and a roadmap to achieving a potential merchandise trade surplus within a decade.