What Factors Contributed to India's 7.29% Growth in Merchandise Exports to $37.24 Billion in July?
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Synopsis
India's merchandise exports surged in July, achieving a notable 7.29% growth to $37.24 billion. This increase, driven by key sectors such as engineering and pharmaceuticals, marks an essential milestone despite global economic challenges. Discover the implications of this growth and how the government is strategizing to enhance export diversification.
Key Takeaways
- India's merchandise exports increased by 7.29% to $37.24 billion in July.
- Key sectors driving growth include engineering goods and pharmaceuticals.
- Imports rose by 8.6% to $64.59 billion.
- The trade deficit was recorded at $27.35 billion.
- The government is working on diversifying export markets and enhancing trade agreements.
New Delhi, Aug 14 (NationPress) India's merchandise exports experienced a remarkable 7.29% rise, totaling $37.24 billion in July this year, compared to $34.71 billion during the same month last year, as per official data published on Thursday.
Commerce Secretary Sunil Barthwal remarked, "In spite of a fluctuating global policy landscape, India's services and merchandise exports for July and the fiscal year 2025-26 have shown significant growth, outpacing global export trends."
The key contributors to the increase in goods exports for July included engineering goods, electronics, pharmaceuticals, organic and inorganic chemicals, and gems and jewellery, Barthwal highlighted.
This boost in goods exports can also be attributed to increased shipments as a preparatory measure against the upcoming higher US tariffs set to take effect later in August.
Imports surged by 8.6% year-on-year to $64.59 billion during the same month, resulting in a trade deficit of $27.35 billion.
From April to July 2025-26, total exports have risen by 3.07% to $149.2 billion, while imports have increased by 5.36% to $244.01 billion.
Barthwal further emphasized that the government aims to diversify India's export markets due to the recent increase in US tariffs. Efforts are underway to accelerate free trade agreements and reassess existing agreements with the EU, UK, EFTA, Oman, ASEAN, New Zealand, Peru, and Chile.
The government is also keen on enhancing the export promotion scheme, focusing on the top 50 importing nations through mobilizing missions abroad.
The overall export of gems and jewellery saw a significant increase of 15.98% to $2.18 billion (Rs 18,756.28 crores) in July compared to $1.88 billion (Rs 15,700.0 crores) during the same month last year, according to the Gems and Jewellery Export Promotion Council (GJEPC).
This notable increase is attributed to heightened trade activities in July as a precaution against the impending tariff threats. As India approaches the festive season and the holiday period in the West, a significant portion of trade has already been finalized in July 2025, according to the GJEPC.
Moreover, various factors beyond seasonal demands, such as product diversification into lightweight and contemporary designs that attract younger global consumers, and improved market access through trade agreements like the India-UAE CEPA, have bolstered competitiveness.
Colin Shah, MD of Kama Jewellery, stated, "Monitoring the developments in the India-US Bilateral Trade Talks is crucial, as these will determine the future of trade between the two nations. With a current imposed tariff of 50%, sustaining this growth will be challenging, but domestic demand for gold is expected to rise with the onset of Indian festivities and the wedding season, providing relief for the industry."
Point of View
This growth in India's merchandise exports is a promising sign of resilience in a complex global trade environment. The government's proactive measures to diversify export markets and strengthen trade agreements reflect a strategic approach to maintaining competitiveness. As we navigate these challenges, it's crucial to support the initiatives that bolster our export potential.
NationPress
19/08/2025
Frequently Asked Questions
What was the percentage increase in India's merchandise exports in July?
India's merchandise exports registered a 7.29% increase in July.
What were the main drivers of export growth in July?
Key drivers included engineering goods, electronics, drugs and pharma, organic and inorganic chemicals, and gems and jewellery.
How much did imports rise in July?
Imports increased by 8.6% year-on-year to $64.59 billion.
What trade deficit did India experience in July?
India's trade deficit stood at $27.35 billion for the month.
What steps is the government taking to enhance exports?
The government is focusing on diversifying exports and fast-tracking free trade agreements.
