India’s trade portfolio: Deficit widens 31.5% to $15bn in July; electronics exports surge 11-fold
India’s trade gap widened in July as imports grew faster than exports, with the combined merchandise and services deficit rising 31.5% year-on-year to $15.03 billion, according to data released by the commerce ministry.Exports of goods and services rose 13.3% to $80.14 billion in July 2026, up from $70.72 billion in the same month last year. But imports grew at a quicker 15.8%, reaching $95.16 billion against $82.16 billion a year earlier. The difference pushed the overall trade deficit up from $11.43 billion in July 2025.Goods shipments provided the biggest boost to exports during the month, with merchandise exports jumping 19.63% to $44.24 billion from $36.98 billion in July 2025.The commerce ministry said July’s merchandise exports were the highest ever recorded for the month, beating the previous July peak of $38.34 billion in 2022.The rise in exports came alongside a sharp increase in merchandise imports. Goods imports climbed 17.52% to $76.22 billion in July, compared with $64.86 billion a year earlier.Services exports were estimated at $35.89 billion in July 2026, compared with $33.74 billion in July 2025. Services imports also increased to an estimated $18.94 billion from $17.30 billion.
April-July trade gap jumps 52.97%
The widening monthly deficit came against a sharper expansion in the cumulative trade gap during the first four months of 2026-27.India’s overall exports during April-July rose 13.16% to $316.42 billion from $279.63 billion in the corresponding period last year. Overall imports, however, climbed 17.28% to $365.85 billion from $311.94 billion.The cumulative overall trade deficit consequently widened to $49.43 billion from $32.32 billion. The ministry put the increase in the deficit at 52.97%.Merchandise exports during the period increased 17.04% to $173.78 billion, while merchandise imports rose 19.27% to $292.38 billion.India recorded higher merchandise exports to both China and the US during April-July.Exports to China increased to $7.78 billion from $5.72 billion a year earlier. Shipments to the US also edged higher, reaching $34.49 billion compared with $33.48 billion in the corresponding period last year.
Electronics emerge as major export driver
Alongside the latest trade figures, government data highlighted the rapid expansion of India’s electronics manufacturing and exports.Electronics exports surged more than 11-fold to Rs 4.24 lakh crore in FY2025-26. Women accounted for nearly 30% of the workforce in the broader electronics manufacturing ecosystem.The government said India’s digital economy now contributes up to 14% of GDP, with initiatives including the Production Linked Incentive (PLI) Scheme, Electronics Components Manufacturing Scheme (ECMS), India Semiconductor Mission (ISM) and Modified Electronics Manufacturing Clusters (EMC 2.0) supporting domestic manufacturing.“Electronic goods have now become India’s third-largest export category, with exports reaching USD 47.96 billion in FY 2025,” it said adding, “Electronics exports grew from Rs 38,000 crore to Rs 4.24 lakh crore,” in the same period.India has also become the world’s second-largest mobile phone manufacturer, with mobile phones rising from the 153rd-largest export item in FY 2014-15 to the country’s largest export product in FY 2025-26.“Production rose from Rs 18,000 crore in 2014-15 to Rs 6.27 lakh crore in 2025-26,” the release said.Mobile phone exports increased 165-fold over the period, rising from Rs 1,500 crore to Rs 2.59 lakh crore. The sector generated 12 lakh jobs, with women making up nearly 70% of the workforce in mobile manufacturing.
