Trade deficit swells to 6-mth high of $31.98 bn despite export growth

SHIPMENTS POWER AHEAD | Costlier crude drives India’s import bill higher

PTI

New Delhi

India's merchandise exports surged 19.63% to $44.24 billion in July, driven by a jump in shipments of petroleum products, while higher imports pushed the trade deficit to a six-month high of $31.98 billion.

Imports rose by about 17.52% year-on-year to $76.22 billion in July due to an increase in inbound shipments of crude oil, which grew by 17.64% to $18.31 billion, according to data released by the commerce ministry on Thursday. 

Brent crude oil prices ranged between $72 and $95 per barrel during July. Crude oil imports accounted for about 24% of total imports during the month. The growth in exports in July was the highest since June 2022, when shipments rose 30.12%. 

During April-July this fiscal, exports jumped 17.04% to $173.78 billion, and imports climbed 19.27% to $292.38 billion.  Merchandise trade deficit during April-July 2026-27 widened to $118.60 billion compared with $96.66 billion during April-July 2025-26. In July 2025, the deficit was $27.88 billion. In June, it was $30.43 billion. Inbound shipments of raw cotton, pulses, fertiliser, coal and coke, chemical material, project goods, gold, and electronics also pushed the country's import bill higher last month. 

Exports to US rise 13% in Jul; shipments to China jump 64.57% 

India's exports to the US increased 12.85% to $9.02 billion in July, while shipments to China jumped 64.57% to $2.2 billion, the Commerce Ministry said on Thursday.  

Imports from these countries also recorded healthy growth during the month under review.  Inbound shipments rose 34.42% to $14.67 billion from China and 18.11% to $5.5 billion from the US, according to ministry data.  During the April-July 2026-27 period, merchandise exports to the US grew 3% to $34.5 billion, while imports increased 22.42% to $22.12 billion.  Similarly, shipments to China rose 35.97% to $7.78 billion, while imports increased 29.68% to $52.71 billion.

India and the US are negotiating a trade pact. 

Exports to West Asia region rise 8.62% 

India's exports to the West Asian region rose by 8.62% year-on-year to $5.7 billion in July, despite global uncertainties, Commerce Secretary Rajesh Agrawal said on Thursday. 

Exports to West Asian countries stood at $5.2 billion in the same month last year, government data showed.  Shipments to the region declined for the first time in March due to the US-Iran conflict, but improved in April, May, and June. Agrawal stated that trade has returned to earlier levels with the region.