FX.co ★ India’s Trade Deficit Widens to $86.1 Billion in Q2 2026

India’s trade balance deficit expanded in the second quarter of 2026, with the indicator reaching -$86.1 billion, according to data updated on 1 September 2026. This compares with a previous reading of -$83.4 billion recorded in the third quarter of 2026.

The figures indicate a further deterioration in India’s external trade position over the period in question, reflecting a larger gap between the country’s imports and exports in U.S. dollar terms. While the data do not specify the underlying drivers, the widening deficit suggests that import growth outpaced export performance during the second quarter of 2026.

The updated numbers will be closely watched by market participants and policymakers as they assess potential implications for India’s currency dynamics, external financing needs, and overall macroeconomic stability in the remainder of 2026.