Trade deficit swells to $30.43 bn as imports outpace exports sharply

OIL BILL BALLOONS | Exports touch $40.41 bn despite shipping disruptions

Agencies

New Delhi

India's exports rose 15.5% year-on-year to $40.41 billion in June, while the trade deficit widened to a five-month high of $30.43 billion due to a surge in imports, driven mainly by higher crude oil prices.

Overall merchandise imports in June increased by about 31% to $70.84 billion. Crude oil imports jumped 40% to $19.32 billion during the month. During the first half of June, oil prices were at around $90 per barrel, but they have since decreased to below $80 per barrel.

Inbound shipments of precious metals, electronics and machinery also increased the import bill. Electronics, machinery and gold imports grew by 58.77% to $13.4 billion, 30.9% to $5.8 billion, and 7% to about $2 billion, respectively.

During April-June this fiscal year, exports increased 15.92% to $129.32 billion, while imports rose 19.89% to $216.18 billion. The merchandise trade deficit during April-June 2026-27 was $86.86 billion compared to $68.75 billion in the same period last year. The trade gap in June 2025 was $19.1 billion, and it stood at $34.68 billion in January. Gold imports in the first quarter of this fiscal year rose to $11.01 billion from $7.49 billion in April-June last year.

Briefing the media, Commerce Secretary Rajesh Agarwal said India's exports are registering healthy growth in areas such as electronics, iron ore, handicrafts, meat and dairy products.

Major markets for Indian exports include South Africa, Singapore, China, Oman and Malaysia. India's exports to West Asian countries rose 7.29% to $5 billion in June, Agarwal told reporters. Government estimates indicate that services exports stood at $33.03 billion in June, with imports at $17.92 billion.

Exports to US dip 1.21% in June, imports up 33.86%

India's exports to the US dipped 1.21% to $8.17 billion in June, while imports grew 33.86% year-on-year to $5.5 billion, according to government data. In June 2025, India's exports to the US stood at $8.27 billion, while imports were reported at $4.11 billion. According to the data, outbound shipments to China surged 31.49% in June to $1.8 billion, while imports from the neighbouring country rose 40.26% to $13.34 billion, resulting in a trade deficit of $11.54 billion.

India's exports to West Asia region evened out in Jun: Comm Secy 

India's exports to the West Asian region have "evened out" in June, recording 7.29% year-on-year growth to $5 billion, Commerce Secretary Rajesh Agrawal said on Monday. "Our exports to the Middle East have evened out," Agrawal said. Shipments in June 2025 were $4.67 billion.