India's goods trade deficit hits 6-month high as imports rise amid Middle East conflict
NEW DELHI: India’s merchandise trade deficit widened more than expected to a six-month high of $31.98 billion in July, as the Middle East war drove up the country’s oil import bill and global freight rates. The data underscores the growing pressure on India’s external balance, as a wider trade gap weighs on the rupee and capital inflows. A Reuters poll of economists expected the merchandise trade…
India's trade deficit widened to a six-month high of $31.98 billion in July, largely due to increased imports driven by the Middle East conflict, according to trade ministry data. The data showed that oil imports surged to $18.31 billion in July, up from $19.33 billion in June, while electronics and gold imports also rose significantly.
Imports climbed to $76.22 billion from $70.84 billion in June, while exports hit a record high of $44.24 billion, surpassing the previous peak of $38.34 billion in 2022. Services exports remained robust at $35.89 billion, while services imports totaled $18.94 billion, resulting in a surplus. However, shipping disruptions and elevated freight rates due to regional conflict have squeezed exporters' margins, particularly those in rice, textiles, pharmaceuticals, and engineering goods.
The U.S. remained the top destination for Indian exports, with shipments totaling $33.49 billion in the April-July period, nearly matching last year's level.
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