# July Trade Deficit Hits 6-Month High; June CAD Widens

2026-08-14T09:17:34+00:00 | Governance | Indian Opinion Desk

Corroboration: 2 independent outlets

India's merchandise trade deficit hit a six-month high of $31.98 billion in July, driven by a surge in imports of crude oil, electronics, coal, and fertilisers, according to commerce ministry data. Exports rose nearly 20% to $44.24 billion, but imports climbed to $76.22 billion, a nine-month high. Meanwhile, the Reserve Bank of India reported that the current account deficit widened to $6.2 billion in June, up from a surplus of $1.2 billion a year ago, as the merchandise trade deficit expanded to $30.2 billion. Services trade provided some relief: services exports were estimated at $35.89 billion in July and $36.4 billion in June, yielding a surplus of $16.95 billion and $17.9 billion, respectively. The RBI data also showed net transfers and portfolio inflows improved the capital account in June. Experts caution that while import growth reflects economic activity, India must strengthen domestic manufacturing to manage the widening external deficit.

## Coverage

- rediff.com <https://www.rediff.com/business/report/indias-trade-deficit-soars-to-six-month-high-of-3198-billion-in-july/20260814.htm>
- thehindu.com <https://www.thehindu.com/business/Industry/current-account-deficit-widens-to-62-billion-in-jun-rbi-data/article71347056.ece>

Tags: Commerce Ministry, crude oil, Electronics, exports, imports, trade deficit
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