Archive · 15 Aug 2025
India's Trade Deficit Widens as Exports Rise, WPI Remains Negative
In July, the prices of goods sold by businesses in India continued to fall, resulting in negative WPI inflation for the second month.
Exports increased in July, with a rise in imports, especially for crude oil and gold.
This led to a wider trade deficit, indicating that India spent more on imports than it earned from exports.
Major sectors like engineering and electronics contributed to the growth in exports.
India's WPI inflation remained negative for the second month at -0.58% in July.
Exports rebounded 7.29% to $37.24 billion in July.
Imports increased by 8.6% to $64.59 billion, driven by crude oil and gold.
Trade deficit widened to an eight-month high of $27.35 billion.
Key sectors driving export growth included engineering, electronics, gems, and pharma.
- Who
- Government of India
- What
- WPI inflation remained negative at -0.58% and exports increased by 7.29%.
- When
- July
- Where
- India
- Why
- Due to deflation in food articles, mineral oils, and fuel and increased imports of crude oil and gold.
Exporters
Importers
Impact of Falling Prices and Trade Deficit
Exporters
Benefit from increased demand and sales
Importers
May face challenges due to global economic uncertainties and rising import costs.
- WPI Inflation (July)
- -0.58%
- Exports (July)
- $37.24 billion
- Imports (July)
- $64.59 billion
- Trade Deficit (July)
- $27.35 billion
- Crude Oil Import Growth
- 7.46%
- Gold Import Growth
- 13.83%
Sources
WPI inflation in negative for second straight month: Falls to 25-month low of -0.58% in July on food, fuel prices
WPI inflation in negative for second straight month: Falls to 25-month low of -0.58% in July on food, fuel prices
WPI inflation remains negative at -0.58% in July amid sharp drop in food prices
Wholesale Price Inflation In Negative Territory, Prices Of Food Articles & Fuel See Deflation
Wholesale price inflation at (-) 0.58 per cent in July, as against (-) 0.13 per cent in June: Govt data - Telegraph India
India’s WPI inflation falls to 2-year low in July as food prices fall
WPI inflation falls to two-year low of -0.58% in July
Wholesale price inflation is negative for second month
WPI inflation falls to 25-month low on softer food prices
WPI inflation declines to 2-year low in July
WPI Plunges To 2-year low of 0.58 per cent in July from a 0.13 per cent in June
Crude oil, gold imports widen trade deficit in July
