India’s manufacturing push is doing two things at once: creating a faster-growing export engine and, at least for now, making the trade deficit worse. India’s goods trade deficit widened to a six-month high of nearly $32 billion in July 2026, according to analysis of the commerce ministry’s provisional trade data by Emkay Research. Merchandise imports rose 8% from June and 18% from a year earlier to $76.2 billion, while exports increased 9% month-on-month and 20% year-on-year to $44.2 billion.