Merchandise exports surge by 20% as India diversifies trade
India's merchandise exports grew by nearly 20% in July 2026, reaching $44.2 billion, despite ongoing turmoil in West Asia. This growth was attributed to market diversification and adaptive trade strategies, including re-routing shipping lines. Exports to West Asia recovered, up almost 9% year-on-year, while exports to China surged by 65% to $2.2 billion. However, the trade deficit widened to $15 billion due to slower growth in services exports (6.4%) compared to services imports (9.5%), indicating a need to boost high-value exports and competitiveness in services.
Key Points
- India's merchandise exports grew by 19.6% in July 2026, reaching $44.2 billion, driven by market diversification and adaptive trade strategies.
- Exports to West Asia recovered significantly, showing an 8.8% increase in July 2026 compared to the previous year, despite earlier contractions.
- Exports to China saw a substantial surge of 65% in July 2026, reaching $2.2 billion, and a 36% growth over April-July.
- The overall trade deficit widened to $15 billion in July 2026, up from $11.4 billion a year earlier, primarily due to services imports growing faster than exports.
- Services exports grew 6.4% to $35.9 billion, while services imports grew 9.5% to $18.9 billion, reflecting subdued export order growth sentiments.
Exam Facts
- Merchandise exports in July 2026: $44.2 billion (19.6% growth).
- Trade deficit in July 2026: $15 billion.
- Exports to China in July 2026: $2.2 billion (65% growth).
- Services exports in July 2026: $35.9 billion (6.4% growth).
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