India's June trade deficit jumps 59% YoY to $30.43 bn
Imports rose nearly 31% while exports increased 15.5%, as higher oil, electronics and gold purchases pushed the monthly gap wider, officials said.
- On Monday, the Ministry of Commerce and Industry reported India's merchandise trade deficit surged 59% year-on-year to $30.43 billion in June. Merchandise imports grew 31% to $70.84 billion, outpacing a 15.5% rise in exports to $40.41 billion.
- Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank, attributed the widening deficit to higher net imports of crude oil, gold, and electronics. Electronics imports surged 59% year-on-year, while petroleum products rose 40%, driven by increased domestic consumption and manufacturing inputs.
- India's services trade surplus fell 6.8% to $15.1 billion in June, though overall exports for the April-June quarter reached $232.7 billion, the highest quarterly achievement on record. This reflects strength across India's broader export sector despite the merchandise gap.
- The Reserve Bank of India expects foreign exchange measures to cushion risks to the Balance of Payments surplus. India is broadening market access, with a UK free trade pact taking effect this month and an EU agreement anticipated early next year.
- During the first quarter of FY27, shipments to South Africa, Kenya, and Singapore grew 76.5%, 60%, and 101.2% respectively. This export diversification demonstrates resilience compared to the same period last year despite global trade challenges.
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India's crude oil imports have increased this year. The month of June saw a particularly significant increase in the import bill. According to government data, the increase in crude oil imports has led to a sharp increase in India's trade deficit.
Trade deficit jumps 430% in June 2026 due to surging oil, gold and electronics imports
Data released by Commerce Ministry showed that India’s overall exports, including both goods and services, grew 9.5% to $73.4 billion in June 2026. Total imports, on the other hand, grew nearly 27% to $88.8 billion
Merchandise Trade Deficit Widens to USD 30.43 Billion in June
Get latest articles and stories on Business at LatestLY. India's merchandise trade deficit widened by about 59 per cent year-on-year to USD 30.43 billion in June 2026, as imports grew at a faster pace than exports, according to data presented by the Ministry of Commerce and Industry. Business News | Merchandise Trade Deficit Widens to USD 30.43 Billion in June.
The Economic Times
Times of IndiaIndia's June trade deficit jumps 59% YoY to $30.43 bn
India's merchandise trade deficit widened to $30.43 billion in June from $28.21 billion in May, even as goods exports rose 15.5% year-on-year to $40.41 billion. In the April-June quarter, overall goods exports increased about 15%, supported by higher petroleum shipments and a recovery in exports to Gulf countries.
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