Overview
The Ministry of Commerce & Industry estimates that total Indian trade (merchandise + services) for April‑June 2026‑27 will reach US$ 232.73 billion, an increase of 11.37 % over the same period last year. Exports are growing, but imports are rising faster, widening the trade deficit.
Key Developments (Q1 FY2026‑27)
- Overall Merchandise Exports jump to US$ 129.32 billion (+15.92 %) from US$ 111.57 billion.
- Services Exports rise to US$ 103.41 billion (+6.16 %).
- Total imports climb to US$ 270.15 billion (+17.55 %) – the sharpest rise among all components.
- Trade Balance widens to a deficit of US$ 37.42 billion (‑15.32 % in June alone).
- Top growth drivers: Gems & Jewellery (+34.64 %), Engineering Goods (+20.74 %), organic & inorganic chemicals (+19.42 %), electronic goods (+18.93 %) and rice (+16.48 %).
Important Facts and Sectoral Highlights
In June 2026, Non‑Petroleum Exports totalled US$ 35.54 billion, up 16.3 % from June 2025. When petroleum and gems are excluded, the export basket still grew, showing diversification beyond traditional commodities.
Imports of project goods fell sharply (‑85.44 %), while imports of silver and precious stones also declined, indicating a possible shift in capital‑intensive projects.
Key destination markets that posted the highest growth in June 2026 were South Africa (+114 %), Singapore (+49 %), China (+31 %)**, Oman (+190 %) and Malaysia (+99 %). For the quarter, Singapore, Tanzania, South Africa, Sri Lanka