India’s merchandise exports grew by 19.63% from a year earlier in July 2026. But imports rose by more in dollar terms, and the Department of Commerce’s provisional July merchandise-trade tableshows the trade deficit widening to $31.98 billion.
What changed in July
Exports were valued at $44.24 billion, up from $36.98 billion in July 2025. Imports rose 17.52%, from $64.86 billion to $76.22 billion.
Although exports grew slightly faster in percentage terms, imports began from a much larger level. The resulting merchandise trade deficit was $31.98 billion, up from $27.88 billion a year earlier.
Why exports and the deficit rose together
A trade deficit is the difference between the value of goods imported and exported. Both can grow while the deficit widens if imports rise by more in absolute dollar terms.
In July, export value increased by about $7.26 billion year on year, while import value increased by about $11.36 billion. The larger import increase widened the deficit even though the export growth rate was higher.
These totals do not show whether the changes came from shipment volumes, prices or a different product mix. The one-page release does not include that breakdown.
What the figures do—and do not—show
The July figures are a single month’s snapshot, not a verdict on the wider economy. The release does not identify the products that drove either increase or explain their wider economic effects.
The government also labels the figures provisional, so they may be revised. The useful next checks are whether export growth continues over several months, how the deficit changes, and what later detailed releases show about the products, prices and volumes behind the totals.
