New Delhi, July 14 -- India's merchandise exports rose 15.52% year-on-year to $40.41 billion in June, but a sharp rise in imports widened the trade deficit to $30.43 billion from $19.1 billion a year earlier, according to government data released on Monday. Imports jumped nearly 31% to $70.84 billion, driven by higher inward shipments of crude oil, electronics and gold, commerce secretary Rajesh Agrawal said while releasing the June trade data. Economists attributed the surge largely to elevated commodity prices. "The widening of the June trade deficit is largely led by higher net imports of oil and electronics. However, exports continue to hold firm," said Upasna Bhardwaj, chief economist at Kotak Mahindra Bank. India's record monthly merchandise trade deficit remains $41.68 billion, recorded in October 2025. In the first quarter of 2026-27, merchandise exports rose 15.92% to $129.32 billion from $111.57 billion a year earlier. Imports grew 19.89% to $216.18 billion, widening the trade deficit to $86.86 billion from $68.74 billion. Despite the strong overall export growth, shipments to some key markets weakened. Exports to the US, India's largest export destination, fell 1.21% to $8.17 billion in June, while imports from the US rose 33.86% to $5.5 billion, largely because of higher energy purchases. Trade with Saudi Arabia also slowed amid geopolitical uncertainty in West Asia. Exports to the kingdom fell 4.42% to $768.56 million from $804.09 million a year earlier. However, India's strategy of diversifying exports into newer markets helped offset weakness in traditional destinations. Exports to South Africa more than doubled to $1.05 billion from $493.05 million, while shipments to Tanzania jumped 94% to $730.24 million. Exports to China rose 31.49% to $1.8 billion and those to Singapore climbed 48.9% to $1.45 billion. Imports from China surged 40.26% to $13.34 billion, leaving India with a bilateral trade deficit of $11.54 billion. Imports from Singapore rose nearly 15% to $2.17 billion, resulting in a deficit of about $720 million. Engineering goods, gems and jewellery, organic and inorganic chemicals, electronic goods and rice were among the main drivers of export growth. Agrawal said exports to West Asia, which had been disrupted by the conflict in the region, had recovered. The region accounted for about $5 billion in exports in June, up nearly 7.3% from a year earlier. "Our exports to the Middle East have evened out," he said, adding that Indian exporters were increasingly routing shipments through Oman's Duqm, Sohar and Salalah ports when the Strait of Hormuz route was disrupted by the conflict between Iran and the US. Services exports, estimated by the commerce ministry, rose about 4% to $33.03 billion in June, while services imports increased to $17.92 billion from $15.90 billion a year earlier....