New Delhi, Aug 14 (IANS) India’s merchandise exports registered a 7.29 per cent increase to $37.24 billion in July this year, compared with the corresponding figure of $34.71 billion in the same month last year, according to official data released on Thursday.

“Despite an uncertain global policy environment, India’s services and merchandise exports in July and in FY26 so far have grown substantially, and are much higher than the global exports growth,” Commerce Secretary Sunil Barthwal said.

“Major drivers of goods exports in July were engineering goods, electronics goods, drugs and pharma, organic and inorganic chemicals, gems and jewellery,” he pointed out.

The surge in goods exports is also due to stepped-up shipments ahead of the higher US tariffs that will kick in from later in August.

Imports also increased by 8.6 per cent year-on-year to $64.59 billion during the month. The country’s trade deficit stood at $27.35 billion in the month, according to the data.

During April-July 2025-26 of the current financial year, exports have now registered an increase of 3.07 per cent to $149.2 billion, while imports have risen by 5.36 per cent to $244.01 billion during this period.

Barthwal further stated that the government is making efforts to diversify the country’s exports to other countries, following the steep hike in tariffs announced by the US. The government is seeking to fast-track free trade pacts and carry out a review of existing pacts such as those with the EU, the UK, the EFTA, Oman, the ASEAN, New Zealand, Peru, and Chile.

He also said that the government wants to strengthen the export promotion scheme. He said steps were being taken to expand focus to the top 50 importing nations via the mobilisation of missions abroad for export promotion efforts.

The overall gross exports of gems & jewellery registered a robust increase of 15.98 per cent to $2.18 billion (Rs 18,756.28 crores) during July this year, as compared to $1.88 billion (Rs 15,700.0 crores) for the same month of the previous year, according to data released by the Gems and Jewellery Export Promotion Council (GJEPC).

This sharp increase is due to the expedited trade activities during July as a preventive measure against tariff threats kicking in from August onwards. As India heads into the festive season, and following this is the holiday season in the West, a major part of the trade has already been concluded in July 2025, the GJEPC said.

Along with this, multiple factors beyond seasonal demand, like product diversification into lightweight and contemporary designs, appealed to younger global consumers, while improved market access through trade agreements like the India-UAE CEPA enhanced competitiveness, the statement said.

Kama Jewellery MD Colin Shah said: “It is important to monitor the development of the India-US Bilateral Trade Talks closely, as that would decide the further course of trade activities between both countries. With the current imposed 50 per cent trade tariffs, it will be difficult to maintain this growth, but domestic demand for gold is now likely to gain momentum with the start of Indian festivities and wedding season, which will be a relief for the industry.”

–IANS

sps/vd