New Delhi, Aug. 14 -- India's merchandise exports rose 19.5% year-on-year to $44.24 billion in July from $37.02 billion a year earlier, marking the highest level for the month, commerce ministry data showed on Thursday. For the April-July period, merchandise exports rose 17% to $173.78 billion from a year earlier. Merchandise imports grew faster, rising 19.27% to $292.38 billion. The merchandise trade deficit widened to $118.6 billion during April-July from $96.66 billion in the year-earlier period. Including services, India's exports rose 13.16% to $316.42 billion during April-July from $279.63 billion a year earlier. Imports increased 17.28% to $365.85 billion. This resulted in an overall trade deficit of $49.43 billion, compared with $32.32 billion a year earlier. The latest data for the services sector released by the Reserve Bank of India is for June, while the July services figure is an estimate. Among major export sectors, engineering goods exports rose to $46.38 billion during April-July from $39.24 billion a year earlier. Petroleum product exports increased to $30.17 billion from $21.15 billion, while electronic goods exports rose to $21.11 billion from $16.16 billion. Exports of drugs and pharmaceuticals stood at $10.79 billion, compared with $10.25 billion a year earlier, while organic and inorganic chemicals exports increased to $10.69 billion from $9.43 billion. Gems and jewellery exports rose to $9.59 billion from $9.05 billion. On the import side, petroleum, crude oil and products remained the largest category during April-July, rising to $78.92 billion from $64.81 billion a year earlier. Electronic goods imports increased sharply to $52.82 billion from $36.59 billion. Imports of machinery, electrical and non-electrical equipment rose to $22.77 billion from $19.44 billion, while gold imports increased to $15.17 billion from $11.46 billion. The US remained India's largest export destination during April-July, with exports rising to $34.49 billion from $33.48 billion a year earlier. The UAE followed with $11.22 billion, while exports to Singapore rose to $8.11 billion from $4.11 billion. China remained India's largest import source, with imports rising to $52.71 billion from $40.65 billion. Russia followed with $34.50 billion, compared with $21.61 billion a year earlier. India has set a target of more than doubling total exports to $2 trillion by FY31 - $1 trillion each in merchandise shipments and services. The government has asked officials to sharpen focus on micro, small and medium enterprises, farm products, certification and promotion of 'Brand India.' The central bank has said weak global demand and high logistics costs are headwinds for merchandise exports. Services exports, though, are expected to sustain their momentum as demand for Indian services remains healthy....