India’s merchandise exports saw a 15.5% increase in June, reaching $40.41 billion compared to $34.98 billion in the same period last year, as per data from the Commerce Ministry. However, a surge in imports, driven by higher global crude oil and precious metal prices, caused the trade deficit to widen to $30.43 billion in June.
Imports grew at a faster rate of 31%, totaling $70.84 billion, up from $54.08 billion a year ago, leading to a nearly 59% increase in the trade deficit from $19.10 billion in June 2025. On a sequential basis, exports decreased to $40.41 billion in June from $45.20 billion in May, while imports also declined to $70.84 billion from $73.41 billion.
The rise in imports was mainly attributed to increased global prices of crude oil and precious metals, particularly petroleum and gems and jewelry. The government pointed out a widening trade deficit in petroleum, electronics, and gems and jewelry sectors, emphasizing the impact of rising disposable incomes and strong demand from India’s expanding middle class on import trends.
In the April-June period, India’s overall goods exports grew by about 15.9% to $129.32 billion compared to the same quarter in the previous year, despite global market uncertainties. Notably, exports to Gulf countries rebounded to pre-war levels, reaching $5.3 billion in May from $2.62 billion in March, while exports to the United States slightly increased to $17.29 billion during April and May.
India is also enhancing its presence in developed markets, with a UK free trade agreement coming into effect this month and an EU deal anticipated by early next year. Commerce Secretary Rajesh Agrawal highlighted that regions beyond NAFTA and Europe now contribute to over half of India’s merchandise exports, indicating a continued diversification of export destinations.
