India's Trade Performance in July 2026

Overview of Merchandise Exports

• India's merchandise exports increased by 19.6% in July 2026, reaching $44.2 billion, compared to July of the previous year.
• This growth was achieved through the diversification of export destinations.
• Exports to various countries, including China, Singapore, Japan, South Korea, Taiwan, Vietnam, Austria, Malaysia, and others, showed significant improvement.
• Exports to China grew by 65% in July 2026, amounting to $2.2 billion.
• In the period from April to July 2026, exports to China increased by 36%.

Performance in the West Asian Region

• India's exports to West Asia increased by 8.62% to $5.7 billion in July 2026, despite earlier disruptions caused by regional turmoil.
• This recovery was supported by routing trade through different ports and shipping lines.
• Ports such as those in Oman and UAE's Fujairah and Khor Fakkan handled more cargo, compensating for limitations at Dubai's Jebel Ali port.

Merchandise and Services Trade Deficit

• Merchandise imports rose by 17.5% to $76.2 billion.
• The services exports grew by 6.4% to $35.9 billion, with imports growing faster at 9.5% to $18.9 billion.
• The overall trade deficit, combining merchandise and services, widened to $15 billion in July 2026 from $11.4 billion in the previous year.

Impact of Infrastructure and New Port Operations

• New ports have become operational, facilitating increased cargo handling which aided the recovery of exports to the West Asian region.
• Infrastructure upgrades at alternative ports supported the redirection of trade routes.