Our Bureau
New Delhi
India’s merchandise trade deficit widened to $30.43 billion in June, the highest in five months, as a sharp rise in imports of crude oil, gold, electronics and machinery outpaced robust export growth. The latest data from the Commerce Ministry showed imports climbed to $70.8 billion, while exports increased 15.5 per cent year-on-year to $40.4 billion. The widening gap reflects strong domestic demand and elevated commodity prices despite continued resilience in outbound shipments.
Even as June’s trade gap expanded from $28.21 billion in May, India’s export performance remained encouraging. Merchandise exports during the April–June quarter reached $129.32 billion, the highest ever for the first quarter of a financial year, registering nearly 16 per cent growth over the corresponding period last year. Total imports during the quarter stood at $216.18 billion, up nearly 20 per cent.
Commerce Secretary Rajesh Agrawal attributed the surge in imports primarily to higher purchases of crude oil, precious metals and electronic goods, noting that increased commodity prices also contributed to the higher import bill. Exports to West Asian markets continued to grow despite geopolitical uncertainties, highlighting the resilience of India’s trade sector amid global headwinds.
Economists, however, cautioned that sustained high imports could exert pressure on India’s external balance. Analysts said disruptions in global shipping routes, particularly around the Strait of Hormuz, along with volatile commodity prices, remain key risks for the coming months. At the same time, India’s services exports continue to provide a significant cushion to the country’s overall external account, partially offsetting the merchandise trade deficit and supporting broader economic stability.
