India’s Trade Gap Widens to $31.98 Billion in July as Oil Prices Climb

India’s merchandise trade deficit expanded to $31.98 billion in July, compared with $30.43 billion in June. Exports reached $44.24 billion, driven by electronics, engineering, marine and petroleum product shipments, while imports surged to $76.22 billion. The import jump reflects higher crude‑oil costs and reduced oil flow through the Red Sea and Hormuz Strait after Houthi attacks. Officials emphasized that the larger deficit mirrors the need for raw oil, electronic components, machinery, capital goods, gold, precious stones, food and other intermediate inputs essential for domestic consumption, energy security and industrial growth, not a structural weakness in the external sector.