India's June trade deficit rises to $30.4 billion, says government
India's trade deficit jumped to $30.4 billion in June 2026, the highest in five months and just above the 12-month average ($29.3 billion).
This rise is mostly thanks to big imports like crude oil, machinery, and electronics that keep factories running and lights on.
The government says it's less a sign of trouble, more proof of India's fast-growing economy.
Government advances production linked incentives
To cut reliance on imports, the government is pushing for more local manufacturing - especially in electronics, renewable energy, and semiconductors, with schemes like Production Linked Incentives.
In FY 2025-26, petroleum made up 26% of imports while machinery and capital goods and electronic goods were close behind at nearly one-fourth.
On the bright side, India's current account deficit shrank to 0.6% of GDP and foreign reserves hit a solid $671.6 billion as of June 2026.