The trade deficit for the month of July 2026 has widened to a six-month high of $31.98 billion compared to $27.88 billion in July 2025, data released by the Commerce Department said.
India’s goods imports surged 17.5 per cent to a nine-month high of $76.22 billion in July while goods exports rose 19.6 per cent to $44.24 billion in the month.
Further, imports were at $292.38 billion in the first four months of the financial year starting April, 19.3 per cent higher year-on-year. Merchandise exports were 17 per cent up year-on-year at $173.78 billion in April-July.
Services exports were estimated at $35.89 billion in July, compared with $33.74 billion a year earlier, while services imports rose to $18.94 billion from $17.30 billion, data said.
As per the Commerce Ministry data, the petroleum product exports surged 67.64 per cent year-on-year to $6.92 billion from $4.13 billion. Electronic goods exports rose 57.40 per cent to $5.92 billion from $3.76 billion, while engineering goods exports increased 17.71 per cent to $12.24 billion.
Further, the exports of organic and inorganic chemicals rose 14.39 per cent to $2.80 billion, while cotton yarn, fabrics, made-ups and handloom products increased 8.40 per cent to $1.11 billion.
Non-petroleum exports stood at $37.32 billion in July, compared with $32.86 billion a year earlier. Exports excluding petroleum, gems and jewellery increased to $35 billion from $30.47 billion.
US and China: Key destinations
The United States, China, Singapore, Kenya and Malaysia were among the major export destinations showing growth in July.
Exports to Kenya recorded a 151.41 per cent increase year-on-year, followed by Singapore at 83.70 per cent and China at 64.57 per cent. Exports to the US rose 12.85 per cent, while those to Malaysia increased 73.03 per cent.