India's trade deficit widens YoY to $23.5 bn in July; exports down 1.4%

India's trade deficit widened to $23.50 billion on an annual basis in July from $19 billion in the same month last year, data from the Commerce Ministry showed on Wednesday. In June, the trade deficit was $20.98 billion.

Merchandise exports in July this year dipped by 1.4 per cent year-on-year to $33.98 billion while imports rose by 7.5 per cent to $57.48 billion. Merchandise exports and imports stood at $34.39 billion and $53.49 billion in June 2023, respectively.

Economists had expected the country's July trade deficit to be $21.35 billion, according to a Reuters poll.


"Our exports are holding on despite what is happening globally, reflected in substantial increase in engineering and electronics good exports," Trade Secretary Sunil Barthwal said.

"Monthly fluctuations in exports are largely impacted by crude oil prices."

Services exports in July were $28.43 billion, while services imports were at $14.55 billion compared with $28.82 billion and $15.02 billion, respectively, in June.

Earlier, in June, merchandise exports rose by 2.6 per cent year-on-year to $35.2 billion while imports rose by 5 per cent to $56.18 billion. Merchandise exports and imports stood at $34.32 billion and $53.51 billion in the same month, respectively.

Commerce Minister Piyush Goyal recently expressed confidence in India's goods and services exports crossing $800 billion this fiscal despite global challenges.