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Imports of goods were valued at $64.59 billion in July, a growth to 8.59% on year.
“India’s merchandise trade deficit widened by a substantial 46% in July 2025 relative to the previous month, and was also much higher than the average of $22.4 billion/month in Q1 FY26. While the monthly deficit prints have been quite volatile in FY 26 so far, interestingly the trailing three-month average, at $22.7 billion is quite similar to the levels seen in the year ago period,’ chief economist at Icra Aditi Nayar said.
Tariffs, crude prices, and import drivers
The July exports to the US were spared the 25% additional tariffs that came into force from August 7. However, like all trade partners of the US, Indian exporters did pay 10% extra baseline tariffs during the month. In April-July the shipments to the US were up 21.64% year-on-year to $ 33.3 billion.
After remaining subdued for the April-June quarter, crude oil imports grew 7.46 % to $ 15.5 billion in July. This increase was in large part due to the increase in prices of crude oil as geo-political pressures mounted.
Export growth in key sectors
Electronics goods was another high value import growing at 12.78% to $ 9,8 billion in July. Machinery imports increased 19.98% to $ 5.36 billion dollars. Imports of pearls and precious and semi-precious stones were up 28.62% to 1.74 billion. Imports of minerals and ores were up 41.82% to $ 1.18 billion. Silver imports jumped 436 % to $ 506 million while gold imports increased 13.83% to $ 3.96 billion.
The only positive in the high deficit numbers is that the increase has been seen in goods that are inputs for the local industry.
Exports got support from electronics where the shipments were up 33.89% to $ 3.76 billion. Engineering goods that account for more than a quarter of total exports were up 13.75% on year to $ 10.42 billion. Despite higher crude oil prices the expiry of refinery products were down 25.05% to $ 4.34 billion.Gems and jewellery exports were up 28.95% to $ 2.38 billion, after staying in the negative zone in April-June. Pharma exports were up 14.06% to $ 2.66 billion. Apparel exports were up 4.75% to $ 1.33 billion.
“Despite the uncertain global policy environment, Indian exports in July and April-July have grown substantially and much higher than global export growth.” commerce secretary Sunil Barthwal told reporters.
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Services exports in July were up 1.4% to $ 31.03 billion while imports were down 3.38% to $ 15.04. Overall exports in July were up 4,53% to $ 68.27 billion while imports were up 6.07% to $ 79.99 billion.
In April-July merchandise exports were up 3.07% to $ 149.20 billion while imports were up 5.36% to $ 244.01 billion. Services exports during the period were up 7.86% to $ 128.43 billion while imports of services were up 0.28% to 64.90 billion.
Overall exports in April-July were up 5.23% to $ 277.63 billion while imports were up 4.25% to $ 308.91 billion.