India's trade deficit may reach $300 billion in FY26
India's trade gap is set to grow even bigger—ICICI Bank expects it to reach $300 billion in 2025-26, up from $287 billion this year.
The main reasons? Exports are slowing down because the world isn't buying as much, while Indians are still importing a lot.
Exports to US jumped, but numbers for other countries fell
Exports to the US actually jumped 24% in June 2025 (thanks to front-loading of trade), but sales to other countries dropped by over 5%.
Even though electronics exports soared and engineering goods held steady, weaker oil sales dragged overall numbers down.
Imports are rising, but exports are still holding up
India's appetite for energy, electronics, and big-ticket items is pushing imports higher.
Plus, fresh US tariffs on 25 countries could mess with global trade.
So far, Indian exports haven't been hit hard—but these changes might open doors for some local products if rivals get squeezed out.