India’s trade deficit widens 31.5% to $15 billion in July despite record exports
Faster import growth pushes trade gap higher even as merchandise exports hit a record monthly high
India’s overall trade deficit widened 31.5 per cent year-on-year (YoY) to $15.03 billion in July 2026, as imports grew faster than exports despite merchandise shipments hitting a new high for the month, according to data released by the Commerce Ministry.
In July, total exports of goods and services increased 13.3 per cent to $80.14 billion from $70.72 billion in the same month last year. Imports, however, grew faster, rising 15.8 per cent to $95.16 billion from $82.16 billion a year ago.
Consequently, the overall trade deficit increased from $11.43 billion in July 2025 to $15.03 billion in July this year, the data showed.
A key area of improvement was merchandise exports, which rose 19.63 per cent to $44.24 billion in July from $36.98 billion a year ago. The figure surpassed the previous record of $38.34 billion set in July 2022, making it India’s highest-ever merchandise export value for the month.
Merchandise imports, however, also recorded a significant increase, rising 17.52 per cent to $76.22 billion in July from $64.86 billion during the same month last year.
Services continued to bolster India’s position in international trade. Services exports increased from $33.74 billion in July 2025 to an estimated $35.89 billion in July this year. Services imports stood at $18.94 billion, up from $17.30 billion a year ago.
A similar trend was visible in the broader April-July period, with imports growing faster even as exports registered significant growth.
India’s total exports during April-July 2026-27 increased 13.16 per cent to $316.42 billion from $279.63 billion during the corresponding period last year. Overall imports, however, rose 17.28 per cent to $365.85 billion from $311.94 billion.
As a result, the total trade deficit during the first four months of the financial year stood at $49.43 billion, significantly higher than the $32.32 billion deficit recorded during the same period last year — an increase of 52.97 per cent.
