New Delhi: India’s merchandise exports rose by 19.6 per cent to $44.24 billion in July from $40.41 billion in the previous month despite the uncertainties in global markets due to the ongoing Middle East conflict.
Commerce Secretary Rajesh Agarwal said that the increase in the country’s outbound shipments was due to higher exports of electronics, engineering and marine goods, and petroleum products.
India’s exports to West Asian countries increased by 8.62 per cent to $5.7 billion in July, Agarwal told journalists.
However, imports also increased to $76.22 billion in July compared with $70.84 billion in June due to the hardening of crude prices in the global market as the Strait of Hormuz, through which 20 per cent of the world’s exports of oil and gas transit, continued to remain choked.
The Houthi attacks on ships near the Red Sea have only worsened the situation as it has led to a further restriction in the movement of oil from the Gulf.
The higher imports caused India’s merchandise trade deficit to widen to $31.98 billion in July from $30.43 billion in June, reflecting a higher gap between the country’s goods imports and exports.
The increase in the merchandise trade deficit largely reflects higher imports of essential and productive goods required for economic growth, industrialisation, and export competitiveness, rather than any structural weakness in India’s external sector, the government told the Parliament this week.
A significant share of India’s imports comprises crude oil, electronic goods, machinery and capital goods, gold and precious stones, fertilisers and other intermediate inputs, which are essential for meeting domestic consumption requirements, ensuring energy security, supporting manufacturing, infrastructure development and industrial expansion, it said.
During April-July in the current financial year, exports surged 17.04 per cent to $173.78 billion while imports rose 19.27 per cent to $292.38 billion.
The government also informed parliament that there was a strong growth momentum in exports during April–June FY 2026-27, with merchandise exports reaching $129.54 billion, the highest-ever quarterly performance in India’s history. This achievement highlights the resilience of the external sector and the growing competitiveness of Indian exports in a challenging global trade environment.
(IANS)
