Petrochemical News - India’s exports rise 13.2% in April-July, but trade deficit widens

India’s cumulative exports of merchandise and services rose 13.16 percent year-on-year during April-July 2026, despite global challenges like geopolitical conflicts in the Middle East and transport disruptions through the Strait of Hormuz. The Indian government expanded market access via Free Trade Agreements (FTAs) with trade partners amid these challenges. Data from the Ministry of Commerce and Industry shows India’s overall exports reached an estimated US$ 316.42 billion in April-July 2026-27, up from US$ 279.63 billion in the same period of 2025-26. This growth was driven by robust merchandise shipments and strong performance in key export sectors. However, faster import growth widened the trade deficit, with total imports estimated at US$ 365.85 billion, up 17.28 percent year-on-year, resulting in a trade deficit of about US$ 49.43 billion. Merchandise exports increased 17.04 percent to US$ 173.78 billion, while merchandise imports rose even faster to US$ 292.38 billion, pushing the merchandise trade deficit to US$ 118.60 billion. Non-petroleum exports grew 12.79 percent to US$ 143.61 billion, indicating broad-based export growth. July trade figures showed combined exports of US$ 80.14 billion, up 13.31 percent, while imports climbed to US$ 95.16 billion, widening the trade deficit to US$ 15.03 billion. Merchandise exports surged in July to US$ 44.24 billion, and imports to US$ 76.22 billion, creating a merchandise trade deficit of nearly US$ 32 billion. Services exports increased to US$ 35.89 billion, while imports rose to US$ 18.94 billion, partially offsetting the merchandise deficit. Sectoral performance highlighted strong growth in petroleum products (67.64 percent), electronics (57.40 percent), and engineering goods (17.71 percent). Exports of organic and inorganic chemicals and cotton yarn also rose. Non-petroleum and non-gems exports stood at US$ 35.00 billion in July, up from US$ 30.47 billion. Import trends showed non-petroleum and non-gems imports rising to US$ 51.82 billion, reflecting domestic demand for industrial inputs and capital goods. The trade picture presents a mixed outlook: strong export growth in key sectors contrasts with widening imports, keeping pressure on the trade balance. The export sector is well-positioned, but global demand, commodity prices, geopolitical developments, and India’s ability to expand its international market presence will determine future performance.