India merchandise exports rise nearly 20% in July

India’s export sector showed significant growth in July 2026. Merchandise exports rose 19.63% year-on-year to $44.24 billion, driven largely by petroleum products (up 68%), electronics (up 57.4%), and engineering goods (up 17.7%). Total exports, including services, reached over $80 billion. The United States remains India’s largest export market, while shipments to China saw a substantial increase of over 64%.

Despite the export surge, India’s trade deficit reached a six-month high of $31.98 billion due to a 17.52% rise in imports, totaling $76.22 billion. Key import drivers included crude oil, electronics, gold, and fertilizers. Notably, Russia supplied approximately 52% of India’s crude oil imports in July.

In the pharmaceutical sector, exports rose 6.8% to $8.1 billion in the first quarter of FY27, with vaccine shipments increasing by over 35%. Looking ahead, India Exim Bank projects that total merchandise exports for the July-September quarter could reach $131.2 billion, representing a 17.6% increase compared to the previous year.