India's merchandise exports saw a robust 19.63 per cent increase in July, reaching $44.24 billion, yet a significant surge in imports, particularly crude oil, propelled the trade deficit to a six-month high of $31.98 billion.
Key Points
- India's merchandise exports surged by 19.63 per cent to $44.24 billion in July, marking the highest growth since June 2022.
- Imports rose by 17.52 per cent to $76.22 billion, primarily due to increased crude oil shipments, leading to a six-month high trade deficit of $31.98 billion.
- Key export drivers included petroleum products, electronics, engineering, and marine goods, with significant growth in shipments to the US, Singapore, and China.
- During April-July this fiscal year, exports climbed 17.04 per cent to $173.78 billion, while imports increased 19.27 per cent to $292.38 billion.
- The cumulative merchandise trade deficit for April-July 2026-27 widened to $118.60 billion, up from $96.66 billion in the same period of the previous fiscal.
The country's merchandise exports surged 19.63 per cent to $44.24 billion in July, driven by a jump in shipments of petroleum products, while higher imports pushed the trade deficit to a six-month high of $31.98 billion.
Rising Imports and Trade Deficit
Imports rose by about 17.52 per cent year-on-year to $76.22 billion in July due to increase in the inbound shipments of crude oil, which grew by 17.64 per cent to $18.31 billion, according to the data released by the commerce ministry on Thursday.
Brent crude oil prices ranged between $72 and $95 per barrel during July.
Crude oil imports accounted for about 24 per cent of the total imports during the month.
The growth in exports in July was the highest since June 2022, when shipments had risen 30.12 per cent.
During April-July this fiscal, exports jumped 17.04 per cent to $173.78 billion, and imports climbed 19.27 per cent to $292.38 billion.
Merchandise trade deficit during April-July 2026-27 widened to $118.60 billion as compared to $96.66 billion during April-July 2025-26.
In July 2025, the deficit was $27.88 billion. In June it was $30.43 billion.
Key Import and Export Categories
Inbound shipments of raw cotton, pulses, fertiliser, coal and coke, chemical material, project goods, gold, and electronics too pushed the country's import bill during the last month.
Electronics, project goods and gold imports grew by 46 per cent to $14.4 billion, about 180 per cent to $90.64 million, and 4 per cent to about $4.16 billion, respectively, in July.
Briefing the media on the data, Commerce Secretary Rajesh Agarwal attributed the increase in the country's outbound shipments to higher exports of petroleum products, electronics, engineering and marine goods.
The main countries where India's exports recorded a jump in shipments include the US, Singapore, China, South Africa, Tanzania and Malaysia.
He also said India's exports to West Asian countries rose 8.62 per cent to $5.7 billion in July.
During the last month, petroleum products, electronics, and engineering shipments grew by 67.64 per cent to about $7 billion, 57.4 per cent to about $6 billion, and 17.7 per cent to about $12.24 billion.
Meanwhile, as per government estimates, services exports stood at $35.89 billion in July, and imports were $18.94 billion.
