India's trade deficit surged 31.5 percent year-on-year to 15.03 billion dollar in July, even as merchandise exports reached a record high.

India’s overall trade deficit, covering both merchandise and services, widened by 31.5 per cent year-on-year to USD 15.03 billion in July 2026, according to data released by the Commerce Ministry. The increase came as imports grew at a faster pace than exports during the month. India’s combined exports of goods and services rose to USD 80.14 billion in July 2026, compared with USD 70.72 billion in July 2025, marking a growth of around 13.3 per cent. Imports, however, increased more sharply by 15.8 per cent to USD 95.16 billion from USD 82.16 billion a year earlier. As a result, the overall trade deficit increased from USD 11.43 billion in July 2025 to USD 15.03 billion this year.

Merchandise exports provided a major boost to India’s export performance. Goods shipments rose 19.63 per cent to USD 44.24 billion in July, compared with USD 36.98 billion in the same month last year. The Commerce Ministry said the figure represented India’s highest-ever merchandise export value for July, surpassing the previous record of USD 38.34 billion set in July 2022.

At the same time, merchandise imports climbed 17.52 per cent to USD 76.22 billion from USD 64.86 billion in July 2025. Services exports were estimated at USD 35.89 billion, up from USD 33.74 billion, while services imports increased to USD 18.94 billion from USD 17.30 billion. During April-July 2026-27, India’s total exports grew 13.16 per cent to USD 316.42 billion, compared with USD 279.63 billion in the corresponding period last year. Overall imports rose 17.28 per cent to USD 365.85 billion from USD 311.94 billion. Consequently, the cumulative trade deficit widened to USD 49.43 billion from USD 32.32 billion, an increase of 52.97 per cent.

Merchandise exports during the four-month period rose 17.04 per cent to USD 173.78 billion, while merchandise imports increased 19.27 per cent to USD 292.38 billion. Exports to China also recorded strong growth, reaching USD 7.78 billion from USD 5.72 billion, while shipments to the US edged higher to USD 34.49 billion from USD 33.48 billion.