Merchandise exports surge by 20% as India diversifies trade
ECONOMY – INDICATORS
14 AUGUST 2026
- India has managed to maintain strong export growth despite the West Asian conflict, largely through diversification of export destinations and alternative shipping routes.
India’s Merchandise Exports — July 2026
- Merchandise exports: $44.2 billion, up 19.6% year-on-year.
- Merchandise imports: $76.2 billion, up 17.5%.
- Trade deficit: widened to $15 billion, compared with $11.4 billion in July 2025.
Services
- Services exports: $35.9 billion, ↑ 6.4%
- Services imports: $18.9 billion, ↑ 9.5%
Because services imports grew faster than services exports, the overall trade deficit widened.
Trade with West Asia
Despite the ongoing conflict, Indian exports to West Asia have recovered strongly:
- July 2026 exports: $5.7 billion
- Growth: 8.8% compared with July 2025
- Exports had earlier fallen sharply by 57% in March and 27% in April.
India has adapted by diversifying ports and shipping routes. Ports such as Fujairah and Khor Fakkan in the UAE and ports in Oman outside the Strait of Hormuz have seen increased cargo traffic.
Diversification of Export Markets
India is increasingly exporting to countries that were previously less important destinations:
| Country/Region | Key development |
| China | Exports ↑ 65% to $2.2 billion in July |
| China (Apr–July) | Exports ↑ 36% |
| Tanzania | Exports ↑ 130% |
| Africa | Growth in Kenya and South African Customs Union region |
| Singapore, Japan, South Korea, Taiwan, Vietnam, Malaysia, Austria | Increasing exports |
