Noida, Aug 14 (APAC Media): India’s merchandise exports rose 19.6 per cent year-on-year to a record USD 44.24 billion in July, but a sharp increase in imports widened the trade deficit to USD 31.98 billion, government data showed.
Merchandise imports increased 17.5 per cent to USD 76.22 billion in July from USD 64.86 billion a year ago. The trade deficit was higher than the USD 30.43 billion recorded in June and USD 27.88 billion in July 2025.
The strong export growth was supported by higher shipments of petroleum products, electronics and engineering goods.
Exports to West Asia also recovered during the month, rising 8.6 per cent year-on-year to around USD 5.7 billion, Commerce Secretary Rajesh Agrawal said.
The United States continued to be a key destination for Indian exports, while shipments to markets including China, Singapore, Kenya and Malaysia also recorded growth.
However, the rise in exports was accompanied by a significant increase in the import bill.
Crude oil and petroleum-product imports rose 17.64 per cent year-on-year to USD 18.31 billion in July. Gold imports increased 4.77 per cent to USD 4.16 billion.
Electronics imports also registered a substantial increase, reflecting continued domestic demand for electronic goods and components.
The widening merchandise deficit was partly offset by India’s strong services exports.
Services exports during April-July 2026-27 were estimated at USD 142.64 billion, compared with USD 131.15 billion during the corresponding period of the previous year.
Services imports during the four-month period stood at USD 73.47 billion, resulting in a services trade surplus of about USD 69.17 billion, against USD 64.35 billion a year earlier.
Including services, India’s total exports were estimated at USD 80.14 billion in July, marking a 13.3 per cent increase from the year-ago period.
The latest figures underline the resilience of India’s export sector despite a challenging global trade environment. At the same time, strong import demand, particularly for energy, electronics and gold, continues to put pressure on the merchandise trade balance.
Exporters are also facing higher freight costs and shipping disruptions amid geopolitical tensions in West Asia, which could affect trade flows and logistics costs in the coming months.
The government has been seeking to diversify India’s export markets and strengthen domestic manufacturing to reduce dependence on imported components and other goods.
The July data therefore presents a mixed picture for the external sector: merchandise exports have maintained strong momentum, but the faster rise in imports has kept the trade deficit elevated. The services surplus, meanwhile, remains an important cushion for India’s overall external balance.
–ENDS–
Disclaimer: This article is for informational purposes only. APAC Media is not liable for any investment decisions or losses. Please conduct your own research or consult a financial advisor before investing.
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