India’s merchandise exports rose by 15.5 percent year-on-year to reach $40.41 billion in June 2026, up from $34.98 billion in June 2025. This information was provided in data released by the Ministry of Commerce on Monday. However, imports saw a sharper rise than exports due to a surge in global prices of crude oil and precious metals. Consequently, the merchandise trade deficit widened to $30.43 billion in June.
According to the data, imports increased by 31 percent to reach $70.84 billion, compared to $54.08 billion in June of the previous year. As a result, the trade deficit expanded by approximately 59 percent, rising from $19.10 billion in June 2025 to $30.43 billion.
However, on a month-on-month basis, exports declined to $40.41 billion in June from $45.20 billion in May. Similarly, imports also fell to $70.84 billion from $73.41 billion in May. According to the government, the sharp rise in imports was primarily driven by the increase in global prices of crude oil and precious metals—specifically petroleum and gems & jewellery.
The government also noted that the trade deficit widened in the petroleum, electronics, and gems & jewellery sectors. Officials stated that imports of electronic goods are consistently rising due to growing incomes and strong demand from the rapidly expanding middle class. During the April-June quarter, despite uncertainties in global markets, India’s total merchandise exports grew by approximately 15.9 percent to reach $129.32 billion, marking a significant increase compared to the same period last year.
According to government officials, India’s exports to Gulf nations have returned to pre-war levels. It rose from $2.62 billion in March to $5.3 billion in May, largely due to traders utilizing alternative shipping routes. Meanwhile, India’s exports to the US climbed to $17.29 billion during April and May.
India is also steadily expanding its access to markets in other developed nations. A Free Trade Agreement (FTA) with the UK is set to come into effect this month, while an agreement with the European Union (EU) is expected to be finalized by early next year. Commerce Secretary Rajesh Agrawal stated that regions outside NAFTA and Europe now account for more than half of India’s total merchandise exports, demonstrating that the country is continuously diversifying its export markets.
