India's goods trade deficit could widen to $300 billion in FY26, amid tepid export growth

ICICI Bank Global Markets projects India's goods trade deficit to widen to USD 300 billion in FY26 due to weak global demand impacting exports and strong domestic consumption driving imports. While exports to the US have grown, overall exports contracted slightly in June, with electronics exports remaining strong. Uncertainties surrounding US trade policies could further impact global trade flows.