India’s trade deficit dropped to $20.3 billion in Q1 FY26, backed by a sharp rise in services exports and stable trade growth.
India’s overall trade deficit declined by 9.4% to $20.3 billion in the April-June quarter of FY2025-26, as per data released by the Ministry of Commerce and Industry. This contraction was largely driven by an 11% surge in services exports, which climbed to $98.1 billion from $88.5 billion a year earlier.
Total exports rose to $210.3 billion, marking a 6% year-on-year increase. While merchandise exports witnessed a marginal 2% rise to $112.2 billion, non-petroleum goods recorded a healthier 6% growth, indicating the impact of softening global oil prices.
Commerce Secretary Shri Sunil Barthwal expressed optimism, stating that if the current growth continues, India could surpass last year’s record $825 billion in exports. Imports also rose 4.4% to $230.6 billion, with increases across both merchandise and services.
The electronics sector led export growth at 47.1%, followed by marine products and tobacco. On the import side, silver and sulphur saw triple-digit spikes.
The U.S. remained India’s top export market with a 22.1% increase, while China continued as the leading import source, with shipments rising 16% to $29.7 billion.
Source: The Hindu
