India's trade deficit widens 31.5% to $15.03 billion in July

New Delhi: India's overall trade deficit, covering merchandise and services, widened by about 31.5 per cent year-on-year to $15.03 billion in July 2026 as imports grew faster than exports, Commerce Ministry data showed.

India's overall exports of merchandise and services rose to USD 80.14 billion in July 2026 from USD 70.72 billion in July 2025, an increase of about 13.3 per cent.

Overall imports increased at a faster pace to USD 95.16 billion from USD 82.16 billion in the year-ago month, a rise of about 15.8 per cent. Consequently, the overall trade deficit increased from USD 11.43 billion in July 2025 to USD 15.03 billion this July.

The export performance was led by merchandise shipments, which jumped 19.63 per cent to USD 44.24 billion from USD 36.98 billion a year earlier.

According to the Commerce Ministry, merchandise exports of USD 44.24 billion marked the highest-ever July export figure, surpassing the previous July high of USD 38.34 billion recorded in 2022.

Merchandise imports also rose sharply, increasing 17.52 per cent to USD 76.22 billion in July from USD 64.86 billion a year ago.

Services exports were estimated at USD 35.89 billion in July 2026, compared with USD 33.74 billion in July 2025, while services imports were estimated at USD 18.94 billion against USD 17.30 billion.

For the April-July period of 2026-27, India's overall exports increased 13.16 per cent to USD 316.42 billion from USD 279.63 billion in the corresponding period last year.

Overall imports during the four-month period climbed 17.28 per cent to USD 365.85 billion from USD 311.94 billion. The cumulative overall trade deficit consequently widened sharply to USD 49.43 billion from USD 32.32 billion, with the ministry putting the increase at 52.97 per cent.

Merchandise exports during April-July rose 17.04 per cent to USD 173.78 billion, while merchandise imports increased 19.27 per cent to USD 292.38 billion.

The data also showed strong growth in shipments to some key markets. Merchandise exports to China rose to USD 7.78 billion during April-July from USD 5.72 billion a year earlier, while exports to the United States edged up to USD 34.49 billion from USD 33.48 billion.