New Delhi, Aug. 14 -- India's strong export growth despite global trade and geopolitical headwinds reflects the resilience and diversification of its exporters, but rising imports and a widening trade deficit could pose a challenge to the external sector in the coming quarters, industry representatives and economists said.

ICRA Chief Economist Aditi Nayar said merchandise exports and imports expanded in double digits for the fourth consecutive month in July, with higher commodity prices contributing to the rise in trade values.

Merchandise imports touched a nine-month high, driven by more than 20 per cent growth in coal, fertilisers, electronic goods and chemical materials and products.

The merchandise trade deficit widened to a six-mo...