Trade deficit widens to 8-month high of $27 bn

The merchandise trade deficit of the country widened to an eight-month high of $27.35 billion in July, according to government data released on Thursday.

The sharp increase from June’s $18.78 billion deficit was driven by a surge in imports, even as merchandise exports showed modest growth ahead of looming US tariff announcements targeting India and other trading partners.

The Ministry of Commerce and Industry said the merchandise exports rose to $37.24 billion in July, an increase of 7.29 per cent from $34.71 billion in the same month last year and an increase of nearly $2 billion from $35.14 billion in June this year.

Meanwhile, imports climbed to $64.59 billion, an 8.6 per cent jump from $59.48 billion in July last year and a significant rise from $53.92 billion in June. The import surge outpaced export growth, widening the trade deficit and raising concerns about India’s trade balance amid global economic uncertainties.

During April-July, data showed, exports grew 3.07 per cent to $149.2 billion, while imports increased 5.36 per cent to $244.01 billion.

Engineering goods, petroleum products and electronic goods were among the top commodities in April-July valued at $39.99 billion, $21.75 billion and $16.17 billion, respectively. Similarly, petroleum, crude and products and electronic goods were the top imported commodities in April to July.

India imported petroleum and crude products worth $64.83 billion in the April to July period, $1 billion down in comparison to last year.