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India's total exports of merchandise and services for July 2026 are estimated at US$ 80.14 billion, up 13.31% over July 2025, while total imports are estimated at US$ 95.16 billion, up 15.83%.
The overall trade deficit for July 2026 widened to US$ 15.03 billion from US$ 11.43 billion a year earlier.
For April-July 2026-27, total exports are estimated at US$ 316.42 billion (up 13.16%) and total imports at US$ 365.85 billion (up 17.28%), leaving a deficit of US$ 49.43 billion against US$ 32.32 billion a year earlier.
Merchandise trade deficit for April-July 2026-27 was US$ 118.60 billion against US$ 96.66 billion in April-July 2025-26, while the services trade surplus rose to US$ 69.17 billion from US$ 64.35 billion.
Non-petroleum, non-gems and jewellery exports for April-July 2026-27 stood at US$ 134.02 billion against US$ 118.27 billion a year earlier.
| Component | July 2026 | July 2025 |
|---|---|---|
| Merchandise exports | 44.24 | 36.98 |
| Merchandise imports | 76.22 | 64.86 |
| Services exports | 35.89 | 33.74 |
| Services imports | 18.94 | 17.30 |
| Total exports | 80.14 | 70.72 |
| Total imports | 95.16 | 82.16 |
| Trade balance | -15.03 | -11.43 |
In April-July 2026-27 India ran a merchandise trade deficit of US$ 118.60 billion and a services trade surplus of US$ 69.17 billion, leaving an overall deficit of US$ 49.43 billion. The merchandise gap is structural: India imports crude oil, gold and electronic components in volumes its goods exports cannot match. The services surplus is equally structural and runs the other way, driven by software, business and professional services, whose imports are far smaller. This is why analysts strip out petroleum and gems and jewellery when judging underlying competitiveness — crude prices and gold demand swing the totals for reasons unrelated to manufacturing performance, so the non-petroleum, non-gems and jewellery series at US$ 134.02 billion of exports is the cleaner signal. Two cautions on reading the release itself: the services figures for July 2026 are an estimate, because the latest RBI data covers June, and the previous year's April-July numbers have been revised on a pro-rata basis using quarterly balance of payments data — so year-on-year growth rates here compare an estimate against a revised base.
Simple Analogy: A household that spends heavily on fuel and groceries but earns well from consulting: the shopping bill and the fee income are separate stories, and only the difference shows up in the bank balance.
The trade deficit is the largest component of the current account, which also includes remittances — India's large inward remittances soften what the goods deficit alone would imply.
Petroleum dominates the import bill, which is why blending targets, refinery capacity and offshore exploration schemes are discussed as balance-of-payments measures as much as energy ones.
The 2025 mission targeting MSMEs, first-time exporters and low-export-intensity regions is aimed at exactly the non-petroleum, non-gems export base that these figures track.
A services surplus of nearly US$ 70 billion in four months rests on skilled labour supply, tying trade data to skilling and higher education policy.
GS Paper 3 > Indian Economy: External Sector, Balance of Payments
General Awareness > Economy: Trade Data and Balance of Payments
General Awareness > Indian Economy
With reference to the international trade of India at present, which of the following statements is/are correct? 1. India's merchandise exports are less than its merchandise imports. 2. India's imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years. 3. India's exports of services are more than its imports of services. 4. India suffers from an overall trade/current account deficit. Select the correct answer using the code given below:
Answer: 1, 3 and 4 only
When was the Duty-Free Tariff Preference (DFTP) Scheme for Least Developed Countries (LDCs) announced by India?
Answer: 2008
Monthly trade data is a staple of banking general awareness and appears in GS3 answers on the external sector
Exports minus imports; negative for India overall at minus US$ 15.03 billion in July 2026.
Trade in physical goods, where India ran a deficit of US$ 118.60 billion in April-July 2026-27.
The excess of services exports over services imports — US$ 69.17 billion in April-July 2026-27.
Trade excluding crude, petroleum products, gold, silver and precious stones, used as a cleaner measure of underlying competitiveness.
Adjustment of earlier monthly estimates using later quarterly balance of payments data, applied here to the April-July 2025-26 figures.