India’s merchandise trade deficit widened by 59% YoY to USD 30.43 billion in June 2026. Exports rose 15.5% to USD 40.41 billion, but were outpaced by a 31% surge in imports to USD 70.84 billion, as per Commerce Ministry data.
India’s merchandise trade deficit widened by about 59 per cent year-on-year to USD 30.43 billion in June 2026, as imports grew at a faster pace than exports, according to data presented by the Ministry of Commerce and Industry.
Merchandise exports rose 15.5 per cent year-on-year to USD 40.41 billion in June from USD 34.98 billion a year ago. However, merchandise imports increased at a sharper pace of about 31 per cent to USD 70.84 billion from USD 54.08 billion during the same period, pushing the trade gap higher.
Including services, India’s overall exports increased to USD 73.45 billion in June 2026 from USD 67.09 billion in June 2025, while overall imports rose to USD 88.76 billion from USD 69.98 billion.
Q1 FY27 Trade Highlights
During the April-June quarter of FY2026-27, merchandise exports grew 15.92 per cent year-on-year to USD 129.32 billion, while merchandise imports increased 19.89 per cent to USD 216.18 billion.
Overall exports, including merchandise and services, rose 11.37 per cent to a record USD 232.73 billion during the first quarter of FY27 from USD 208.98 billion a year earlier, according to the ministry’s data. The data also showed the April-June performance as the highest-ever overall quarterly exports (merchandise and services) recorded in the first quarter of any financial year.
Analysis of Export Destinations
Top Export Destinations
Trade data showed that India’s export growth remained broad-based across products and markets. The United States continued to be India’s largest export destination during April-June FY27 with exports worth USD 25.47 billion, followed by the UAE at USD 7.95 billion, Singapore at USD 6.52 billion and China at USD 5.60 billion.
Growth Across Major Markets
Among major markets, exports to China increased 27.5 per cent year-on-year, Australia 25.1 per cent, Mexico 21.5 per cent, Germany 12.2 per cent and the United Kingdom 11.1 per cent. Shipments to Singapore more than doubled, while exports to Sri Lanka and Tanzania rose 124.6 per cent and 146.9 per cent, respectively.
Regional Performance
Region-wise, exports to ASEAN grew 66.9 per cent, and shipments to Africa increased 53.1 per cent during the quarter. According to the presentation, ASEAN and Africa together contributed more than USD 7.6 billion in additional exports over the previous year.
Product-wise Growth
The ministry also highlighted strong growth in exports of several agricultural products, including whole cardamom and black tea, alongside continued strength in engineering goods, pharmaceuticals and agricultural products. (ANI)
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