India’s goods exports jump 20% in July, trade deficit hits 6-month high

In July 2026, India's goods exports surged by nearly 20% to $44.24 billion, but the increase was offset by a 17.51% rise in imports to $76.22 billion. The trade deficit widened to a six-month high of $32 billion, according to data released by the Commerce and Industry Ministry. Economists attributed the surge in both exports and imports to the impact of elevated commodity price inflation, leading to higher trade value.

Merchandise imports reached their highest level in nine months, driven by a 20%+ expansion in items like coal, fertilizers, electronic goods, and chemical materials, pushing the trade deficit to a high. Commerce Secretary Rajesh Agrawal noted that India's exports have stabilized in the West Asia region and are growing faster in markets like the Association of Southeast Asian Nations, Africa, South Asia, and North-East Asia.

The US and China were among the top destinations for Indian exports, with shipments to China rising by 64.57% to $2.2 billion in July. Indian exporters showcased resilience and adaptability amidst global disruptions, with exports to several countries, including Singapore, the UAE, Germany, and Australia, growing significantly. However, declines were observed in exports to the UK, Bangladesh, Saudi Arabia, and Nepal.

Despite the rising import bill and widening trade deficit, the Federation of Indian Export Organisations' President, S C Ralhan, expressed optimism about India's external sector, emphasizing the need for strategic import substitution and domestic manufacturing growth in critical sectors.