India's merchandise trade deficit expanded to $30.4 billion in June, marking a five-month high as imports significantly outpaced exports. While exports grew 15.5 percent year-on-year, imports surged 31 percent during the same period, creating a widening gap between the two figures.
The import surge was driven primarily by increased purchases of crude oil and fertilizers, which saw substantial year-on-year expansion in June. On the export side, electronics and engineering goods led growth, though these gains were insufficient to offset the import increases. Gold imports also contributed to the overall import expansion during the month.
During the April-June quarter, exports continued their upward trajectory with a 15 percent increase, but this growth rate lagged behind the import expansion, reinforcing the month's broader trade imbalance pattern.
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