India’s June Trade Deficit Stands At $30.4 Billion, Exports Reach Record Quarterly Level

India’s merchandise trade deficit widened to $30.4 billion in June as imports grew significantly faster than exports, even as the country recorded its highest-ever quarterly export performance during the April-June period. Commerce Secretary Rajesh Agarwal said India’s export sector continued to show steady growth, with total exports during the first quarter of the financial year reaching a record level despite challenges in global trade conditions.

According to the latest trade data, merchandise exports stood at $40.4 billion in June, registering a year-on-year growth of 7.3%. However, merchandise imports increased sharply by 31% compared with the previous year to reach $70.8 billion, resulting in a wider trade gap. Services exports were estimated at $33 billion, while services imports stood at $17.9 billion during the month.

Despite the rise in the trade deficit, India’s overall export performance remained strong during the April-June quarter. Total exports, including goods and services, reached $232.7 billion, marking an 11.4% increase compared with the same period last year. The figure represents the highest quarterly export value recorded by the country, highlighting continued momentum in external trade.

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Several sectors contributed to export growth during June, with electronics goods, rice, iron ore, handicrafts, poultry products, and marine products emerging as strong performers. Engineering goods, petroleum products, and electronics continued to remain among India’s leading export categories. The United States, the United Arab Emirates, and Singapore were among the top destinations for Indian exports during the month.

China, Singapore, and South Africa were key contributors to export growth, while demand from Middle Eastern markets remained stable and helped balance weaker performance in some regions. On the import side, China, Russia, and the United States continued to be among India’s largest sources of inbound shipments. Rising imports of various goods contributed significantly to the expansion of the trade deficit.

The latest figures follow a merchandise trade deficit of $28.21 billion in May, which had already marked a 25% year-on-year increase as imports outpaced exports. While the widening deficit remains a concern for policymakers, officials have highlighted the resilience of India’s export sector and the continued expansion of trade across multiple product categories. The government is expected to closely monitor global demand trends and import patterns in the coming months.

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