Exports grow at fastest pace in four years

Export of oil products soared 67.6% to $6.9 billion on the back of strong demand from several Asian countries

NEW DELHI: India’s goods exports rose at its fastest pace in over four years, rising 19.5% to $44.2 billion in July, while imports were 17.4% higher at $76.2 billion, resulting in a trade deficit of $32 billion during the month.In June, 2022 exports had jumped 30.2% to $42.3 billion. While the trade deficit in July is the highest since Jan, commerce secretary Rajesh Agrawal said that as a proportion of total trade, it was lower than the level in Jan or even in June.

Export of oil products soared 67.6% to $6.9 billion on the back of strong demand from several Asian countries — from Sri Lanka to Singapore — which have been grappling with shortages until Indian refiners shipped fuel. Besides, higher global prices have helped push up the value of shipments. The other major drivers were electronics (57% increase to $5.9 billion in July) and engineering goods (17.7% increase to $12.2 billion). The three sectors accounted for nearly 57% of all Indian exports in July.On import front, crude imports went up 17.6% to $18.3 billion in July, slower than previous three-month average, while there was a moderation in gold shipments, which grew 4.8% to $4.2 billion, along with a 66% fall in silver to $172 million. But, electronics imports, some of which were components feeding India’s growing manufacturing base, shot up 46% to $14.4 billion. Fertiliser too was 55% higher at nearly $2.5 billion in July, while coal increased 29% to $3 billion.There was recovery in exports to West Asia, which showed growth at 8.6%, with value of goods shipped pegged at $5.7 billion. Agrawal pitched it as a turnaround from a 56% decline post-war and said opening of other ports in the region was helping. While exports to China jumped nearly 65% to $2.2 billion, there was a pickup to the US too, where goods worth $9 billion were shipped, 13% higher than July 2025. In April-July, goods exports to US have been tepid, registering 3% rise, marginally lower than 3.5% in the case of EU. “We are seeing diversification of our export basket, which will help in the long run,” said Agrawal.In a note, Barclays pointed to increased imports from Oman (150%) and Brazil (147%) and said this was due to India’s efforts to diversify its natural gas imports.