India’s trade deficit expanded sharply by 430% year-on-year to $15.3 billion in June 2026, driven by a steep rise in merchandise imports, particularly crude oil, gold, and electronic goods, according to data released by the Ministry of Commerce and Industry.
India’s overall exports (goods and services) rose 9.5% to $73.4 billion during the month, while total imports climbed nearly 27% to $88.8 billion, resulting in a significantly wider trade gap compared with $2.9 billion in June 2025.
Commerce Secretary Rajesh Agrawal said the increase in imports was concentrated in a few key commodities rather than reflecting broad-based import growth.
He noted that higher crude oil and gold imports were primarily driven by elevated global prices amid ongoing geopolitical tensions, while electronic imports continued to rise due to strong domestic demand and increased sourcing of components for manufacturing.
Merchandise imports registered a robust 31% growth to $70.8 billion, outpacing merchandise exports, which increased 15.5% to $40.4 billion. Consequently, the merchandise trade deficit widened to $30.4 billion, marking a 59% increase over June 2025.
Despite the monthly widening in the trade gap, India achieved its highest-ever quarterly exports during the April–June 2026 period, with combined goods and services exports reaching $232.7 billion. The Commerce Ministry said 68 of the 104 export categories for which quantity data is available recorded growth in both export value and volume, indicating broad-based export resilience.
On the services front, India’s trade surplus narrowed as imports grew faster than exports. Services exports rose 2.9% to $33 billion, while services imports increased 12.7% to $17.9 billion. As a result, the services trade surplus declined 6.8% to $15.1 billion during June.
Commenting on the trade data, Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank, said the widening deficit was largely attributable to higher net imports of oil and electronics.
She observed that export performance remained resilient despite global uncertainties and added that oil price movements would remain a key factor influencing India’s current account deficit. Bhardwaj also noted that the Reserve Bank of India’s foreign exchange management measures are expected to help cushion risks to the country’s balance of payments.
The latest trade figures underscore the dual impact of resilient domestic demand and elevated global commodity prices on India’s external sector, even as exports continue to post healthy growth.
