India's merchandise trade deficit widened to $31.98 billion in July, exceeding the $30.20 billion consensus estimate from economists polled by Reuters and rising from $30.43 billion in June.
Imports drove the gap's expansion, climbing to $76.22 billion in July from $70.84 billion in June—a $5.38 billion increase. Exports also rose, reaching $44.24 billion from $40.41 billion, a gain of $3.83 billion. Because imports grew by a larger absolute dollar amount, the deficit widened.
The steeper import increase points to resilient domestic demand, a primary driver of India's persistent trade imbalance. The actual deficit topped the Reuters consensus by $1.78 billion, reflecting the continued strength of inbound shipments relative to forecasts.
