India’s exports jump 19.6% to $44.2 billion in July; trade deficit widens to $32 billion; electronics shipments surge
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India’s exports rose 19.63% year-on-year to $44.24 billion in July, even as imports grew at a slower pace of 17.52% to $76.22 billion, widening the country’s merchandise trade deficit to $31.98 billion, according to government data released on Thursday.
During the April-July period of the current fiscal, exports increased 17.04% to $173.78 billion, while imports rose 19.27% to $292.38 billion. The data indicates continued momentum in outbound shipments despite elevated import growth.
Commerce Secretary Rajesh Agarwal said exports to West Asian countries increased 8.62% to $5.7 billion in July. He attributed the rise in overall exports to higher shipments of petroleum products, electronics, engineering goods and marine products.
West Asia exports rise as petroleum, electronics shipments gain momentum
The government also highlighted the rapid expansion of India’s electronics manufacturing and exports, with electronic goods emerging as the country’s third-largest export category. Electronics exports rose from around ₹38,000 crore to ₹4.24 lakh crore, while exports of electronic goods reached $47.96 billion in FY2025, according to the data shared by the government.
“Flagship initiatives such as the Production Linked Incentive (PLI) Scheme, Electronics Components Manufacturing Scheme (ECMS), India Semiconductor Mission (ISM) and Modified Electronics Manufacturing Clusters (EMC 2.0) have bolstered domestic manufacturing,” the government said.
India becomes second-largest mobile phone manufacturer
India has also emerged as the world’s second-largest mobile phone manufacturer. Mobile phones, which were the country’s 153rd-largest export item in FY2014-15, have become India’s largest export product in FY2025-26, the government said.
“Production rose from ₹18,000 crore in 2014-15 to ₹6.27 lakh crore in 2025-26,” it said, adding that mobile phone exports surged 165-fold from ₹1,500 crore to ₹2.59 lakh crore during the period.
The sector has generated around 12 lakh jobs, with women accounting for nearly 70% of the workforce in mobile manufacturing. Across the broader electronics manufacturing ecosystem, women constitute nearly 30% of the workforce.
Digital economy expands as connectivity and 5G coverage improve
The government further said India’s digital economy now accounts for up to 14% of GDP. Internet subscribers have more than quadrupled from 25.15 crore in 2014 to over 109.2 crore as of March 2026, while wireless data costs have fallen from ₹308 per GB in 2014 to ₹7.51 per GB in 2026.
Average mobile broadband download speeds have also increased sharply, from 13.67 Mbps in March 2022 to 132 Mbps in December 2025. Meanwhile, 5G services are available in 99.9% of districts across states and Union Territories, with 5.63 lakh 5G base stations deployed as of June 2026.