India’s merchandise trade deficit increased to $30.43 billion in June 2026, up from $28.21 billion in May, as exports fell sharply while imports remained high.
Merchandise exports declined to $40.41 billion in June from $45.20 billion in May, while imports stood at $70.84 billion compared with $73.41 billion in the previous month, reflecting continued pressure on India’s external accounts.
Commerce Secretary Rajesh Agrawal highlighted ongoing engagement with the United States on multiple trade-related investigations.
India has submitted its response to the US Section 301 probe concerning alleged forced labour in Indian supply chains.
Agrawal indicated that the final findings of the investigation are expected to be released later this month.
He added that the separate probe into excess capacity in certain sectors may take another four to six weeks following the release of the draft report.
Agrawal clarified that Section 301 investigations are distinct from the broader India-US trade agreement, but noted that the two nations are reviewing trade issues holistically.
He stated that any long-term trade deal will address these concerns comprehensively to ensure sustainable bilateral engagement.
Both countries are reportedly exploring “innovative ways” to resolve outstanding trade matters, though no fixed timeline for the finalisation of the agreement has been set.
Regarding the existing 10% US tariff on Indian goods, Agrawal said that the current Most Favoured Nation (MFN) duties remain in effect, while the US continues to explore additional duties through ongoing investigations.
He also noted that the 10% tariff is scheduled to expire on July 24, adding that India remains actively engaged with US authorities to ensure a balanced resolution of trade issues.
Overall, India’s trade performance in June was impacted primarily by declining exports, contributing to a wider deficit.
Simultaneously, the government continues to engage with the US to address tariff-related investigations and negotiate a sustainable bilateral trade framework, ensuring long-term stability for exporters and importers alike.
