What happened in July 2026 (goods and services trade)
India’s merchandise exports increased sharply in July 2026, while merchandise imports rose at a slower pace. Merchandise trade performance shows strong goods export momentum, but the overall trade deficit widened because services imports increased faster than services exports.
Key reported figures for July 2026:
Merchandise exports: about $44.2 billion, up around 19.6% year-on-year.Merchandise imports: about $76.2 billion, up around 17.5% year-on-year.Goods export growth: around 20%.Overall trade deficit: widened in July because services imports grew faster than services exports.Services exports: reported to have grown modestly.Services imports: reported to have increased at a higher rate than services exports.
Why goods exports rose: West Asia-linked shipment recovery and rerouting
Exports to West Asia improved after earlier disruption in 2026. The reported explanation is logistics rerouting through alternative ports and shipping lines, including ports outside the Strait of Hormuz, which supports recovery in goods exports once constraints ease.