India's June 2026 merchandise trade deficit rises to $30.43 bn

India's trade deficit widened sharply in June 2026, reaching a five-month high of $30.43 billion for merchandise trade, as a surge in imports driven by high crude oil prices and strong domestic demand for electronics and gold outpaced export growth. Official data released on July 13 showed the overall trade deficit, including services, expanded to $15.32 billion for the month.

Merchandise imports grew by 31 percent year-on-year to $70.84 billion in June. A key driver was crude oil, with imports jumping 40 percent to $19.32 billion, reflecting elevated global prices during the first half of the month. Imports of electronics, machinery, and gold also saw significant increases, rising 58.8 percent, 30.9 percent, and 7 percent, respectively. Meanwhile, merchandise exports grew at a slower pace of 15.5 percent to $40.41 billion.

Commerce Secretary Rajesh Agrawal, briefing reporters on the data, noted that the import surge was concentrated in a few commodities. He attributed higher oil and gold prices to the prevailing geopolitical situation and linked rising electronics imports to increased domestic consumption and manufacturing inputs. Despite the monthly deficit, Agrawal...