Key Takeaways
- India’s goods exports rose nearly 20% to $44.24 billion in July.
- Goods imports increased 17.51% to $76.22 billion during July 2026.
- India’s merchandise trade deficit widened to a six-month high.
India’s goods exports rose nearly 20% year on year to $44.24 billion in July 2026, supported by stronger shipments of electronics and engineering products. Imports also increased 17.51% to $76.22 billion as higher input and commodity costs lifted the import bill, widening India’s merchandise trade deficit to $32 billion.
Electronics And Engineering Exports Drive July Growth
The latest figures marked the fourth consecutive month of double-digit growth in both merchandise exports and imports. Economists attributed much of the increase in trade values to elevated commodity prices, which raised the cost of imported goods and industrial inputs.
In July India’s merchandise trade deficit was higher than the $27.9 billion recorded in the same month last year. It also exceeded the average monthly deficit of $29 billion recorded during the first quarter of FY27.
Merchandise imports reached their highest level in 9 months. Imports of coal, fertilisers, electronic goods, chemical materials, and chemical products each recorded growth of more than 20%, contributing to the wider deficit.
India’s trade performance also varied across major markets. Exports to the US increased 12.85% to $9.02 billion in July, while shipments to China rose 64.57% to $2.2 billion.
From April to July 2026, exports to the US increased 3% to $34.5 billion. Imports from the US rose 22.42% to $22.12 billion during the same period.
Exports to China increased 35.97% to $7.78 billion during the first 4 months of FY27, while imports from China rose 29.68% to $52.71 billion.
Export Markets Expand As Import Costs Rise
India also recorded strong export growth across several other markets in July. Shipments to Singapore increased 83.7% year on year to $1.6 billion.
Exports to the UAE, Netherlands, Germany, South Africa, Tanzania, Australia, Malaysia, Sri Lanka, Italy, and Vietnam also recorded positive growth during the month. However, shipments to the UK, Bangladesh, Saudi Arabia, and Nepal declined.
On the import side, purchases from Russia, South Korea, Singapore, Germany, Oman, Malaysia, Taiwan, and Brazil increased. Imports from Oman, Taiwan, and Brazil recorded particularly sharp increases in June, rising 150.36% to $1.57 billion, 111.3% to $1.62 billion, and 146.73% to $1.4 billion, respectively.
India’s export performance in July also reflected changing trade patterns across regions. Goods exports to the US and China continued to expand, while exporters recorded stronger growth across markets in Southeast Asia, Africa, South Asia, and Northeast Asia.
For Indian businesses, the latest trade figures highlight two parallel trends. Export demand remains strong across several product categories and markets, while higher import costs are increasing pressure on companies that depend on overseas energy, components, machinery, and other inputs.
The widening of India’s merchandise trade deficit also reflects the difference between the value of India’s imports and exports. With imports rising alongside economic activity, businesses across manufacturing and trade will continue to monitor commodity prices, input costs, and demand across key international markets.
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