India’s merchandise trade deficit for July widened to an eight-month high of $27.35 billion from $18.78 billion in June, the commerce ministry said on August 14.
On a year-on-year basis too, the goods deficit recorded last month was larger compared to $23.5 billion in July 2024.
The goods exports in July rose 7.3 percent to $37.24 billion, while imports came in at $64.59 billion, up 8.6 percent on-year.
"Despite uncertain global policy environment, India's services and merchandise exports in July and in FY26 so far have grown substantially, and much higher than the global exports growth, Commerce Secretary Sunil Barthwal said.
Services exports in July 2025 are seen at $31.03 billion, a less than 2-percent rise on-year, while the imports counterpart is seen falling by 3.4 percent to $15.40 billion.
Therefore, the overall trade deficit for the previous month is estimated at a smaller $11.72 billion covering both goods and services.
Major drivers of merchandise exports in July were engineering goods, electronics goods, drugs and pharma, organic and inorganic chemicals, gems and jewellery, according to Barthwal.
While, engineering goods exports increased by 13.75 percent in July on-year, outbound shipments of electronic products rose nearly 34 percent.
Gems and jewellery exports increased by 28.95 percent on-year in July 2025 and outbound shipments of drugs and pharmaceuticals rose by 14 percent.
Among imports, inbound shipments of crude oil rose to $15.6 billion last month from $14.5 billion in July 2024, while gold climbed to $3.9 billion from $3.5 billion on-year.
"India’s merchandise trade deficit widened by a substantial 46-percent to an eight-month high of $27.3 billion in July 2025 relative to the previous month, and was also much higher than the average of $22.4 billion per month in Q1 o FY26. While the monthly deficit prints have been quite volatile in the current fiscal so far, interestingly the trailing three-month average, at $22.7 billion is quite similar to the levels seen in the year ago period," said Aditi Nayar, Chief Economist, ICRA.
On a cumulative basis, merchandise exports during April-July 2025 were $149.20 billion as compared to $144.76 billion during the same period last year, while imports were higher at $244.01 billion versus $231.59 billion on-year.
Therefore, the goods trade deficit during April-July 2025 was $94.80 billion, wider than $86.83 billion during the same period last year.
The estimated value of service exports during April-July 2025 is at $128.43 billion as compared to $119.07 billion on-year, while imports in the category stood at $64.90 billion versus $64.72 billion.
The services trade surplus for April-July 2025 is seen at $63.53 billion more than $54.34 billion in the same period last year.
The cumulative trade deficit (merchandise and services) during April-July 2025 is therefore seen at $31.28 billion.
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