India’s trade deficit widened to a five-month high of $30.43 billion in June, compared to $19.10 billion in June 2025, according to data released by the Ministry of Commerce.
The trade deficit expanded as India’s goods imports jumped 31 per cent year-on-year to $70.84 billion in June. The surge in imports is due to the price effect in commodities such as crude oil and gold.
Among key sectors, gems and jewellery exports jumped 34.64 per cent year-on-year to $2.41 billion, while engineering goods exports rose 20.74 per cent to $11.48 billion. Exports of organic and inorganic chemicals also registered robust growth of 19.42 per cent to $2.77 billion.
During the April-June quarter of FY27, India’s combined merchandise and services exports rose 11.37 per cent year-on-year to an estimated $232.73 billion.
Merchandise exports increased 15.92 per cent to $129.32 billion during the quarter from $111.57 billion in the corresponding period last year. Non-petroleum exports also grew 12.44 per cent year-on-year to $106.30 billion, indicating broad-based strength across manufacturing sectors.
The government said export growth in June was driven by strong performance in engineering goods, gems and jewellery, electronic goods, organic and inorganic chemicals, and rice.
On the import side, growth was primarily driven by crude petroleum, electronic goods, coal and coke, gold, and vegetable oils, reflecting continued domestic demand and industrial activity.
Commerce Secretary Rajesh Agrawal said, “The higher imports of petroleum and gems and jewellery are largely due to higher global prices. The increase does not necessarily reflect a proportional rise in import volumes.”
India’s dependence on Chinese imports continued to increase as data showed imports from China rose to $38.04 billion in the first quarter of FY27, compared with $29.73 billion during the corresponding period last year.