3 min readNew DelhiUpdated: Aug 13, 2026 08:59 PM IST
India’s goods exports in July, driven by higher electronics and engineering items, jumped nearly 20% to $44.24 billion, but higher input costs due to the West Asia crisis also drove imports 17.51% higher to $76.22 billion, pushing the goods trade deficit to a six-month high of $32 billion, data released by the Commerce and Industry Ministry showed on Thursday.
Economists said India’s merchandise exports and imports expanded by double digits for the fourth consecutive month in July 2026, largely reflecting the impact of elevated commodity price inflation, which boosted the growth in trade value.
“Merchandise imports touched the highest level in 9 months, boosted by a 20%-plus expansion in items like coal, fertilisers, electronic goods, and chemical materials and products. The merchandise trade deficit widened to a slightly higher-than-expected 6-month high of $32.0 billion in July 2026 from $27.9 billion in the year-ago month, while also exceeding the average monthly print of $29.0 billion seen in Q1 FY27,” Aditi Nayar, Chief Economist, ICRA said.
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Commerce Secretary Rajesh Agrawal said that India’s goods exports have stabilised in the West Asia region and are witnessing faster growth in non-traditional markets such as the Association of Southeast Asian Nations, Africa, South Asia and the North-East Asia region during the April to June quarter.
Data showed that India’s exports to the US also increased 12.85% to $9.02 billion in July, and shipments to China jumped 64.57% to $2.2 billion. During April-July 2026-27, India’s goods exports to the US grew 3% to $34.5 billion, while imports increased 22.42% to $22.12 billion. Similarly, shipments to China rose 35.97% to $7.78 billion, while imports increased 29.68% to $52.71 billion.
According to commerce ministry data, exports to Singapore grew 83.7% year-on-year during the last month to $1.6 billion. India has also recorded positive export growth to the UAE, the Netherlands, Germany, South Africa, Tanzania, Australia, Malaysia, Sri Lanka, Italy, and Vietnam during the reporting period.
However, exports to the UK, Bangladesh, Saudi Arabia and Nepal registered a decline in July. On the other hand, imports from Russia, Korea, Singapore, Germany, Oman, Malaysia, Taiwan, and Brazil increased. Imports in June from Oman, Taiwan, and Brazil surged 150.36% to $1.57 billion, 111.3% to $1.62 billion, and 146.73% to $1.4 billion.
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Federation of Indian Export Organisations (FIEO) S C Ralhan, President, Federation of Indian Export Organisations (FIEO), said, “The over 19% growth in merchandise exports in July is an outstanding achievement and a strong testimony to the resilience, competitiveness and adaptability of Indian exporters. Achieving record exports despite continuing disruptions in global logistics and supply chains, besides higher transportation costs, demonstrates the ability of Indian businesses to respond swiftly to an increasingly complex global trading environment.”
Ralhan cautioned that the rising import bill and widening trade deficit require attention. “While imports of energy, capital goods and intermediates are also associated with higher domestic economic activity, we need to simultaneously strengthen domestic manufacturing capabilities in critical inputs, electronics, machinery and other areas of high import dependence. Export expansion and strategic import substitution should complement each other in strengthening India’s external sector,” Ralhan said.
