India’s Exports Grow 11% in Q1 FY27, Trade Deficit Widens on Rising Imports

India’s exports maintained a steady growth trajectory in the first quarter of the financial year 2026–27, even as a sharp rise in imports pushed the trade deficit significantly higher, according to data released by the Ministry of Commerce and Industry on Tuesday.

The country’s total exports, including merchandise and services, stood at $232.73 billion during April–June FY27, registering an 11.37% increase compared to $208.98 billion in the same period last year. However, imports grew at a faster pace of 17.55%, reaching $270.15 billion, leading to a widened trade deficit of $37.42 billion.

Merchandise exports emerged as a key driver, rising 15.92% to $129.32 billion during the quarter. Non-petroleum exports also showed resilience, growing 12.44% to $106.30 billion, indicating diversification in India’s export basket.

On a monthly basis, India’s total exports for June 2026 were estimated at $73.45 billion, up 9.48% year-on-year, while imports surged 26.85% to $88.76 billion, resulting in a trade deficit of $15.32 billion, significantly higher than $2.89 billion in June last year.

Among sectors, gems and jewellery exports recorded the highest growth of 34.64%, followed by engineering goods (20.74%), organic and inorganic chemicals (19.42%), electronic goods (18.93%), and rice (16.48%). These sectors were the major contributors to export growth in June.

Services trade continued to provide stability, with exports estimated at $103.41 billion during the April–June quarter, while imports stood at $53.97 billion, resulting in a trade surplus of $49.43 billion.

In terms of global trade partners, exports saw strong growth in markets such as South Africa, Singapore, China, Oman, and Malaysia, while imports increased significantly from Russia, China, the United States, UAE, and Taiwan.

The data also showed consistent growth in non-petroleum and non-gems and jewellery exports, reflecting a broader base of export performance beyond traditional sectors.

While the export momentum remains robust, the faster pace of import growth highlights increasing domestic demand and dependence on foreign goods, contributing to a widening trade gap in the current fiscal year.