India's trade deficit widens sharply in July amid surge in imports

India's merchandise trade deficit expanded significantly in July, reaching $27.35 billion, as imports surged despite a rise in merchandise exports. The deficit exceeded economists’ expectations of $20.35 billion and marked a sharp increase from $18.78 billion in June.

Exports grew to $37.24 billion in July, up from $35.14 billion in June, while imports surged to $64.59 billion, up from $53.92 billion the previous month.

In the April-July period, shipments to the U.S. climbed to $33.53 billion, up from $27.57 billion a year earlier. This came even as U.S. President Donald Trump imposed a 25% tariff on Indian goods, raising the total tariff on Indian exports to 50%, one of the highest among U.S. trading partners, due to India's continued purchase of Russian oil.