India's merchandise deficit widened to $31.98 billion in July 2026 compared to $30.43 billion in the previous month and $27.88 billion from a year-ago period.
Merchandise exports rose 19.6 percent on-year in July to $44.24 billion, while imports grew 17.5 percent to $76.22 billion, taking the merchandise trade deficit to $31.98 billion. Exports stood at $36.98 billion and imports at $64.86 billion in July 2025.
Overall exports, including services, are estimated to have risen 13.31 percent year-on-year to $80.14 billion in July 2026.
Total imports, including services, rose 15.83 percent to $95.16 billion, leaving an overall trade deficit of $15.03 billion. Services exports are estimated at $35.89 billion, while services imports stood at $18.94 billion.
During April-July 2026-27, merchandise exports rose 17.04 percent to $173.78 billion from $148.48 billion a year earlier.
Merchandise imports increased to $292.38 billion from $245.14 billion, taking the cumulative merchandise trade deficit to $118.60 billion, compared with $96.66 billion in the year-ago period.
Total exports, including merchandise and services, during April-July 2026-27 are estimated at $316.42 billion, up 13.16 percent from $279.63 billion a year earlier. Total imports are estimated at $365.85 billion, up 17.28 percent, resulting in a combined trade deficit of $49.43 billion.
The commerce ministry said petroleum products, electronic goods, engineering goods, organic and inorganic chemicals, and cotton yarn, fabrics, made-ups and handloom products were among the major drivers of merchandise export growth in July.
Petroleum product exports rose 67.64 percent to $6.92 billion, while electronic goods exports jumped 57.4 percent to $5.92 billion. Engineering goods exports increased 17.71 percent to $12.24 billion and organic and inorganic chemical exports rose 14.39 percent to $2.80 billion. Exports of cotton yarn, fabrics, made-ups and handloom products grew 8.4 percent to $1.11 billion.
Non-petroleum and non-gems and jewellery exports rose to $35 billion in July 2026 from $30.47 billion a year earlier. Non-petroleum exports stood at $37.32 billion, while non-petroleum and non-gems and jewellery imports were $51.82 billion.
India's crude oil and petroleum product imports rose 17.64 percent year-on-year to $18.31 billion in July, while gold imports increased 4.77 percent to $4.16 billion.
Services exports for April-July 2026-27 are estimated at $142.64 billion, compared with $131.15 billion in the year-ago period. Services imports rose to $73.47 billion from $66.81 billion, leaving a services trade surplus of $69.17 billion, compared with $64.35 billion a year earlier.
Among export destinations, the US, China, Singapore, Kenya and Malaysia recorded positive growth in July. On the import side, Russia, China, Oman, Taiwan and the US recorded the highest growth among major sources.
Commerce Secretary Rajesh Agrawal said India's exports to West Asia picked up to $5.7 billion in July 2026, up 8.6 percent year-on-year.
"India has recovered the losses it experienced during the crisis, exports to the region are stabilising to last year's levels," he said.
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