Trade deficit jumps 430% in June 2026 due to surging oil, gold and electronics imports

India’s trade deficit grew by 430% to $15.3 billion in June 2026 primarily due to high growth in merchandise imports, which were skewed by a spurt in the value of imports of crude oil, electronic and electrical goods, and gold, official data released on Monday (July 12, 2026) said. 

Data released by the Ministry of Commerce and Industry showed that India’s overall exports, including both goods and services, grew 9.5% to $73.4 billion in June 2026. Total imports, on the other hand, grew nearly 27% to $88.8 billion. 

As a result, India’s trade deficit widened to $15.3 billion in June 2026 compared to $2.9 billion in June last year, a growth of about 430%. 

“Looking at the data, you would see that merchandise imports in particular have grown by a significant amount and think that this is a matter of concern, but the fact is that these imports are being driven by just a few commodities such as petroleum products and crude oil, gold, and electronics,” Commerce Secretary Rajesh Agrawal said during a press briefing. 

“Gold and oil have increased in value because of higher prices due to the prevailing geopolitical situation, and electronics imports are rising because of higher consumption within the economy and also inputs being used for manufacturing,” he added. 

Merchandise imports grew 31% to $70.8 billion as opposed to exports, which grew at a relatively slower 15.5% to $40.4 billion in June 2026. As a result, the merchandise trade deficit stood at $30.4 billion, about 59% higher than in June 2025. 

On a quarterly basis, however, India’s exports in the April-June 2026 quarter stood at $232.7 billion, the highest ever quarterly achievement. The Commerce Ministry’s presentation also showed that 68 out of the 104 export lines where quantity data is available grew in terms of both value and volume of exports. 

On the services front, India’s trade surplus shrank in June 2026 as imports outpaced exports. Services exports grew 2.9% in June 2026 to $33 billion, while imports grew 12.7% to $17.9 billion. As a result, the services trade surplus fell 6.8% in June 2026 to $15.1 billion.

“The widening of the June trade deficit is largely led by higher net imports of oil and electronics,” Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank. “However, exports continue to hold firm. We continue to monitor oil prices going ahead for any risks to our current account deficit/GDP ratio of 1.5%. Overall, the RBI’s foreign exchange measures are expected to cushion risks to the Balance of Payments surplus.”