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India's trade deficit hits 5-month high as imports surge

Times of India Published Jul 14, 2026 Reviewed Jul 14, 2026 ✓ Reviewed by citations.press editors

India's trade deficit widened to a five-month high of $30.4 billion as imports jumped 31% to $70.8 billion.

30.4 $B · India's trade deficit70.8 $B · India's imports31 % · India's import growth commerce department, data release

India's exports rose 15.4% to $40.4 billion in June.

40.4 $B · India's exports15.4 % · India's export growth commerce department, data release

Crude shipments jumped over 40% to $19.3 billion.

19.3 $B · India's crude shipmentsmore than 40 % · India's crude shipment growth commerce department, data release

Fertiliser imports trebled to $2.3 billion.

2.3 $B · India's fertiliser imports200 % · India's fertiliser import growth commerce department, data release

Gold imports rose 7% to stay just below $2 billion.

2 $B · India's gold imports7 % · India's gold import growth commerce department, data release

Silver imports fell 74% to $60 million.

60 $M · India's silver imports74 % · India's silver import decline commerce department, data release

Engineering exports grew 21% to $11.5 billion in June.

11.5 $B · India's engineering exports21 % · India's engineering export growth commerce department, data release

Electronics exports grew 19% to $4.9 billion.

4.9 $B · India's electronics exports19 % · India's electronics export growth commerce department, data release

Oil products exports rose 9.2% to $4.8 billion.

4.8 $B · India's oil products exports9.2 % · India's oil products export growth commerce department, data release

Pharma exports increased 7% to $2.8 billion.

2.8 $B · India's pharma exports7 % · India's pharma export growth commerce department, data release

Gems and jewellery exports rose 35% to $2.4 billion.

2.4 $B · India's gems and jewellery exports35 % · India's gems and jewellery export growth commerce department, data release

Chemicals exports grew over 19% to $2.8 billion.

2.8 $B · India's chemicals exportsmore than 19 % · India's chemicals export growth commerce department, data release

West Asia shipments increased 7.3% to $5 billion in June.

5 $B · India's West Asia shipments7.3 % · India's West Asia shipment growth Rajesh Agrawal, commerce secretary

Exports to the US dipped 1% to $8.2 billion.

8.2 $B · India's exports to the US1 % · India's US export decline Rajesh Agrawal, commerce secretary

ICRA expects the current account deficit to widen to at least 1.0% of GDP in FY2027.

at least 1 % of GDP · India's current account deficit Aditi Nayar, chief economist at ICRA

NEW DELHI: India's trade deficit widened to a five-month high of $30.4 billion as imports jumped 31% - the fastest pace of expansion in nearly four years - to $70.8 billion, although exports retained their momentum.Latest data released by the commerce department on Monday estimated that exports rose 15.4% to $40.4 billion, but it was overshadowed by a surge in the import of crude, fertilisers, electronics and machinery.On account of high global prices, crude shipments jumped over 40% to $19.3 billion, while fertiliser imports trebled to $2.3 billion, with volumes also likely to have played a part.

There was some comfort from bullion though as gold imports rose 7% to stay just below $2 billion, while silver was down 74% to $60 million, as global prices cooled and the impact of higher duty played out. Precious stones, vegetable oil, chemicals and project goods were among the handful of prominent sectors that saw lower imports during June.On the export front, electronics and engineering goods were the top drivers with oil products seeing some moderation.

While engineering remained the top item in India's export basket, growing 21% to $11.5 billion in June, electronics overtook petroleum products to be the second largest product category.Electronics exports grew 19% to $4.9 billion, while oil products rose 9.2% to $4.8 billion, according to official estimates.

Pharma was the fourth biggest export (7% increase to $2.8 billion) item. Gems and jewellery saw a pickup, rising 35% to $2.4 billion, while chemicals grew over 19% to $2.8 billion.Commerce secretary Rajesh Agrawal told reporters that barring West Asia all other regions have seen an increase in exports and even in the case of West Asia, he said recovery has started with shipments from India estimated to have increased 7.3% to $5 billion in June.In contrast, there was a 1% dip in exports to the US, which were estimated at $8.2 billion.

"While the uptick in imports in June 2026 was largely broad-based, select items such as oil, electronics, fertilisers and chemicals witnessed a sizeable YoY expansion in the month, albeit partly on account of a low base... While the situation in West Asia and its impact on crude oil prices remains a monitorable, ICRA expects the current account deficit to widen to at least 1.0% of GDP in FY2027," said Aditi Nayar, chief economist at ratings agency ICRA.Get the latest business news and top stories.

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