Pre-tariff rush to US lifts exports by 7% in July

India's goods exports rebounded in July after two months of contraction, with outbound shipments rising 7.3 per cent to $37.24 billion, led by a surge in exports to the US before the country's reciprocal tariff kicked in and bolstered by a recovery in exports to other key markets.

- SHREYA NANDI

However, the country's merchandise trade deficit widened to an eight-month high of $27.35 billion as imports also picked up 8.6 per cent after two months of decline to hit a three-month high of $64.6 billion, quick estimates released by the Ministry of Commerce and Industry on Thursday showed.

Services exports grew 1.4 per cent to $31.03 billion in July, while services imports shrank 3.4 per cent to $15.4 billion, resulting in a $15.63 billion surplus. Based on these estimates, subject to revision after the Reserve Bank of India finalises services trade numbers, India's total exports were up 4.5 per cent in July to $68.3 billion, while imports grew 6 per cent to $80 billion.

Commerce Secretary Sunil Barthwalsaidatabriefingthat India’s goods and services exports are doing well despite global economic uncertainties. Exports have grown substantially, much higher than the global exports growth, heunderlined.

The growth in merchandise exports was driven by engineering goods (up 13.7 per cent), electronics (33.9 per cent), drugs and pharmaceuticals (14 per cent), organic and inorganic chemicals (7.2 per cent) and gems and jewellery (28.9 per cent).