Context: India merchandise exports
India’s merchandise exports recorded strong growth in July 2026 despite West Asian disruptions. This reflects diversification of India’s trade geography and shipping routes.
Key Data
India’s merchandise exports stood at $44.2 billion, up 19.6% year-on-year.
Merchandise imports stood at $76.2 billion, up 17.5%.
Total exports stood at $80.14 billion, up 13.31%.
Total imports stood at $95.16 billion, up 15.83%.
The trade deficit widened to $15 billion, compared with $11.4 billion a year earlier.
Diversification of India’s Trade Geography
Changing Pattern
India is increasingly exporting to countries that traditionally served mainly as sources of imports.
This helps diversify India’s export markets and reduce dependence on conventional destinations.
China
India’s exports to China rose 65% to $2.2 billion in July.
During April–July, exports to China grew 36%.
West Asia
Exports to West Asia recovered by nearly 9% despite the ongoing crisis.
This was achieved through rerouting of shipments via alternative ports and shipping lines.
Africa
Exports to Tanzania rose 130%.
Kenya and the Southern African Customs Union region also recorded strong growth.
Key Takeaway
India’s export growth in July 2026 shows that trade diversification and alternative shipping routes helped absorb external disruptions. However, the widening trade deficit remains an important concern.
