New Delhi, Aug. 11 -- The government said India's merchandise trade deficit remains broadly in line with its recent average and does not reflect a structural weakness in the external sector, while it continues to strengthen domestic capacity in strategic sectors to reduce import dependence, Jitin Prasada, Minister of State for Commerce and Industry said in a written reply in Lok Sabha on Tuesday.

The merchandise trade deficit stood at USD 30.4 billion in June 2026, a five-month high, but was marginally above the 12-month average of USD 29.3 billion, the ministry said, adding that a single month's deficit does not by itself reflect overall trade performance.

The minister said the higher deficit largely reflects imports required for a rap...