Exports Rise, Trade Deficit Widens

India's exports posted strong growth in June, increasing 15.5% year-on-year to $40.41 billion (approximately ₹3.88 lakh crore). Despite the healthy export performance, the country's trade deficit widened to a five-month high of $30.43 billion (around ₹2.92 lakh crore) as imports surged significantly during the month.

The rise in global crude oil prices sharply increased India's import bill. Crude oil imports jumped 40% to $19.32 billion, while total imports rose nearly 31% to $70.84 billion. Electronics imports increased by 58.77%, machinery imports climbed 30.9%, and gold imports rose 7% to nearly $2 billion. With crude oil prices hovering around $90 per barrel during the first half of June, higher energy costs emerged as the primary reason for the widening trade deficit.