India’s merchandise trade deficit narrowed more than expected in June to $18.78 billion, as imports fell sharply even though goods exports dropped to their lowest level in seven months, government data showed on Tuesday.
The June deficit was significantly below the $22.24 billion forecast by economists in a Reuters poll, and lower than the $21.88 billion figure recorded in May.
Exports of goods stood at $35.14 billion in June, down 9% from the previous month and nearly flat compared to a year earlier. This marked the weakest monthly export figure since November 2024, when it had stood at $32.11 billion, according to LSEG data.
“India’s exports in June were affected by fall in crude oil prices,” said Trade Secretary Sunil Barthwal, quoted Reuters.
On the imports side, the total value declined to $53.92 billion in June from $60.61 billion in May and $56 billion in June 2024. Crude oil imports dropped to $13.7 billion from $14.7 billion in the previous month, while gold imports fell to $1.8 billion from $2.5 billion.
During the April-June quarter, goods exports rose to $112.17 billion from $110.06 billion a year earlier, while imports increased to $179.44 billion from $172.16 billion.
Despite an increase in base tariffs on Indian goods exported to the US — rising to 10% — India’s exports to the US climbed to $25.52 billion in the first quarter of FY26, up from $20.89 billion in the same period last year.
India’s services trade in June posted an estimated surplus of $15.62 billion, driven by $32.84 billion in services exports and $17.58 billion in imports, the Commerce Ministry data showed.
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