Trade monitor: India’s June merchandise trade deficit narrows to $18.78 billion, services surplus stays strong

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.