India’s merchandise trade deficit in June was narrower-than-expected, on the back of lower imports even as exports slipped to a seven-month low, data released on Tuesday showed.
The goods trade deficit stood at $18.78 billion in June, lower than economists’ expectations of $22.24 billion and against $21.88 billion in the previous month.
Goods exports, at $35.14 billion in June, were 9 per cent lower than the previous month’s shipments and nearly unchanged from a year earlier.
The figure was the lowest since November, when exports stood at $32.11 billion, according to LSEG data.
“India’s exports in June were affected by a fall in crude oil prices,” Sunil Barthwal, trade secretary, told reporters.
Imports fell to $53.92 billion from $60.61 billion in May and $56 billion in June 2024.
India’s crude oil imports fell to $13.7 billion from $14.7 billion in May, while gold imports declined to $1.8 billion from $2.5 billion in the previous month.
For April-June, goods exports rose to $112.17 billion from $110.06 billion a year earlier, while imports gained to $179.44 billion from $172.16 billion in the year-ago period.
Despite the base tariff on Indian goods exported to US rising to 10 per cent, exports continued to rise. In April-June, India’s shipments to the US rose to $25.52 billion against $20.89 billion a year ago.
Meanwhile, India’s overall trade in services showed an estimated surplus of $15.62 billion in June, with services exports at $32.84 billion and imports at $17.58 billion, data showed.
Commerce secretary Sunil Barthwal said the country’s goods and services exports during the first quarter of financial year 2025-26 are estimated at $210 billion, which is an increase of about 6 per cent year-on-year.
FIEO president S.C. Ralhan urged the government to maintain a sharp, sector-focused export strategy, especially in services.
“High import-intensity sectors like electronics are gaining ground, while traditional labour-intensive sectors remain flat or in decline,” said Ajay Srivastava of Economic think tank GTRI.