Trade Deficit Of $31.98 billion At Six-month High
In the goods basket, petroleum products exports increased by 67.64 per cent to $ 6.92 billion, electronic goods exports increased by 57.40 per cent to $5.92 billion and engineering goods exports increased by 17.71 per cent to $12.24 billion
Chennai: Trade deficit widened to a six-month high of $31.98 billion in July, as both imports and exports rose in the month on high commodity prices.
Merchandise exports rose 19.6 per cent to $44.24 billion in the month on a year-on-year basis while goods imports surged 17.5 per cent to a nine-month high of $76.22 billion, according to Commerce Ministry data.
The trade deficit widened to $31.98 billion against $27.88 billion in July 2025. Trade deficit stood at $30.4 billion in June.
In the goods basket, petroleum products exports increased by 67.64 per cent to $ 6.92 billion, electronic goods exports increased by 57.40 per cent to $5.92 billion and engineering goods exports increased by 17.71 per cent to $12.24 billion.
“The positive impact of the India-Oman free trade pact is already visible, and the free trade pact with the UK is expected to give a further push to exports. Together, they would partly offset the negative trend seen in some of the traditional markets,” said Pankaj Chadha, chairman, EEPC.
In the imports basket, crude and petroleum products, coal and fertilizer increased the bill substantially. Crude and petroleum products were up 17.6 per cent to $18 billion, coal imports went up 29 per cent to $ 3 billion, and fertilizer imports were up 55 per cent to $2.4 billion. Electronics goods imports too were up 46 per cent to $14 billion.
“India’s merchandise exports and imports expanded by double digits for the fourth consecutive month in July 2026, largely reflecting the impact of elevated commodity price inflation, which boosted the growth in trade value. Merchandise imports touched the highest level in 9 months, boosted by a 20 per cent-plus expansion in items like coal, fertilisers, electronic goods, and chemical materials and products,” said Aditi Nayar, chief economist, ICRA.
In the April-July period, exports to Singapore grew 97 per cent, China 36 per cent, Tanzania 131 per cent, South Africa 69 per cent, and Sri Lanka 111 per cent. In July, exports to the US were up 12.8 per cent.