India’s combined goods and services exports increased 13.31% year-on-year in July 2026, while imports rose 15.83%. Strong merchandise export growth, particularly in electronics, engineering goods and petroleum products, supported the export performance, but the faster increase in imports widened the overall trade deficit.
KEY TAKEAWAY
July exports from India rose 13.31% year-on-year in July 2026, with total merchandise and services exports estimated at US$80.14 billion.
Imports, however, increased faster, rising 15.83% to US$95.16 billion. This resulted in a combined merchandise-and-services trade deficit of US$15.03 billion, compared with US$11.43 billion in July 2025.
The July numbers show continued export momentum, led by merchandise sectors including petroleum products, electronic goods and engineering goods, while the faster growth in imports remains an important factor for businesses tracking India’s external trade position.
India’s July 2026 Trade Numbers
July exports of merchandise reached US$44.24 billion in July 2026, compared with US$36.98 billion a year earlier.
Merchandise imports were US$76.22 billion, up from US$64.86 billion in July 2025.
Services exports were estimated at US$35.89 billion, while services imports were estimated at US$18.94 billion. The Ministry noted that the July services figures were estimates because the latest RBI services-sector data available at the time covered June 2026.
| July 2026 | Value |
|---|---|
| Total exports | US$80.14 billion |
| Total imports | US$95.16 billion |
| Merchandise exports | US$44.24 billion |
| Merchandise imports | US$76.22 billion |
| Services exports* | US$35.89 billion |
| Services imports* | US$18.94 billion |
| Trade balance | -US$15.03 billion |
*Services data for July 2026 was estimated.
Merchandise Exports Provide the Main Growth Support
Several major merchandise categories recorded strong year-on-year growth in July.
Petroleum products exports increased 67.64%, from US$4.13 billion in July 2025 to US$6.92 billion in July 2026.
Electronic goods exports increased 57.40%, reaching US$5.92 billion from US$3.76 billion.
Engineering goods exports increased 17.71%, reaching US$12.24 billion compared with US$10.40 billion a year earlier.
Exports of organic and inorganic chemicals rose 14.39% to US$2.80 billion, while cotton yarn, fabrics, made-ups and handloom products increased 8.40% to US$1.11 billion.
Other categories registering positive growth included iron ore, meat, dairy and poultry products, cashew, marine products, handicrafts and plastics and linoleum products.
Imports Are Growing Faster Than Exports
The headline export growth remains positive, but imports grew at a faster rate in July.
Total exports increased 13.31%, while total imports increased 15.83% year-on-year.
As a result, the combined trade deficit increased to US$15.03 billion, compared with US$11.43 billion in July 2025.
For exporters and importers, the difference between export and import growth is an important indicator because it provides a broader picture of India’s external trade position rather than looking at export growth alone.
Electronics and Engineering Continue to Stand Out
The July data highlights the continuing importance of manufacturing-linked export sectors.
Electronic goods exports rose more than 57% year-on-year, while engineering goods exports increased nearly 18%.
These sectors are particularly relevant for businesses looking at India’s expanding merchandise export base, as their performance contributed materially to the overall increase in goods exports during the month.
India’s April–July Export Performance
The July performance comes after a strong start to FY2026–27.
India’s combined merchandise and services exports during April–July 2026–27 were estimated at US$316.42 billion, compared with US$279.63 billion during the corresponding period of 2025–26 — an estimated increase of 13.16%.
Merchandise exports during the four-month period reached US$173.78 billion, an increase of 17.04% from US$148.48 billion.
Total imports during April–July were estimated at US$365.85 billion, up 17.28% year-on-year. The combined trade balance for the period was -US$49.43 billion.
What It Means for Exporters and Importers
The July trade figures present a mixed but important picture.
For exporters, continued growth in merchandise exports — particularly electronics, engineering goods and petroleum products — indicates that several major export segments maintained strong momentum.
For import-dependent businesses, however, faster import growth means that India’s overall trade balance remains under pressure.
The key issue for businesses will therefore be whether export growth can continue to keep pace with or exceed import growth in the coming months.
The Ministry’s data also shows that non-petroleum exports reached US$37.32 billion in July 2026, compared with US$32.86 billion in July 2025, indicating that export growth was not limited to petroleum products alone.
India’s trade outlook is also being shaped by sector-specific policy measures, including the latest raw sugar import quota announced by DGFT.
What to Watch Next
The next monthly trade releases will be important for assessing whether July’s export momentum continues.
Businesses should particularly watch:
- Electronics export growth
- Engineering goods exports
- Petroleum-product exports
- Non-petroleum export performance
- Import growth
- The overall merchandise trade deficit
- Cumulative April–July and subsequent monthly trade performance
For exporters, the continuation of growth across multiple merchandise categories will be more significant than any single month’s headline number.
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