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India’s merchandise exports rose 19.6% year-on-year to $44.24 billion in July 2026, marking a sharp increase from $36.98 billion a year earlier, according to provisional data released by the Ministry of Commerce and Industry. The increase was led by petroleum products, electronic goods and engineering products, even as higher imports pushed the merchandise trade deficit close to $32 billion.
Among major product categories, petroleum product exports increased 67.6% year-on-year to $6.92 billion. Electronic goods exports climbed 57.4% to $5.92 billion, while engineering goods shipments rose 17.7% to $12.24 billion. Exports of organic and inorganic chemicals increased 14.4% to $2.80 billion.
The broader export performance was not limited to petroleum and other high-value categories. Non-petroleum, non-gems-and-jewellery exports reached $35 billion in July, up from $30.47 billion in the same month last year. This points to continued expansion in several manufacturing and processed-goods segments.
The improvement in exports came alongside a stronger increase in imports. Merchandise imports rose 17.5% year-on-year to $76.22 billion in July, compared with $64.86 billion in July 2025. As a result, the merchandise trade deficit widened to $31.98 billion, from $27.88 billion a year earlier.
The export increase comes as Indian traders continue to contend with disruption across key international shipping routes. Higher freight and insurance costs, along with delays and container availability constraints, have added to logistics costs for exporters, particularly those dependent on West Asian trade corridors.
Exports to West Asia nevertheless showed an improvement in July, reaching about $5.7 billion, an 8.6% year-on-year increase, according to government officials. The United States remained a major destination for Indian goods, although exporters continue to face uncertainty over tariff policy and market access.
The latest figures therefore present a mixed picture for India’s external trade: merchandise exports are expanding at a strong pace, supported by manufacturing-intensive sectors, but imports are growing nearly as quickly. For logistics and supply-chain operators, the trajectory of freight rates, energy prices and geopolitical disruptions will remain important factors in determining whether the export momentum can be sustained through the rest of the fiscal year.
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Andhra Pradesh has secured investment commitments worth ₹1,614 crore from three South Korean automotive component manufacturers supplying Hyundai and Kia, strengthening its ambitions to develop an automotive manufacturing hub in Anantapur district. The companies have chosen Andhra Pradesh over Tamil Nadu for their expansion plans, highlighting the intensifying competition among southern states to attract global manufacturing investments. Hwashin, Seoyon and Iwamet have signed memorandums of understanding (MoUs) with the Andhra Pradesh government to establish manufacturing facilities in the state. The projects are expected to generate 1,418 jobs collectively and expand the regional ecosystem supporting automotive production. Investment Commitments and Employment Potential The proposed investments are distributed across the three companies, with Hwashin accounting for the largest share of the capital commitment. Hwashin: ₹850 crore, with an estimated employment potential of 100. Seoyon: ₹514 crore, expected to generate 918 jobs. Iwamet: ₹250 crore, with around 400 jobs anticipated. Together, the projects represent a significant addition to Andhra Pradesh's automotive component manufacturing capacity. Their proposed location is strategically important because of the presence of Kia's existing vehicle manufacturing operations in the region. A stronger network of component suppliers could support local sourcing, improve coordination between manufacturers and suppliers, and reduce transportation distances for components delivered to assembly facilities. South Korea Outreach Drives Investment Push The investment commitments follow Andhra Pradesh IT, Electronics and HRD Minister Nara Lokesh's visit to South Korea in July 2026. During the visit, he held discussions with automotive component manufacturers associated with the Hyundai-Kia supply chain and invited them to explore investment opportunities in Andhra Pradesh. All three companies participated in the engagement. The state subsequently pursued the discussions through its Economic Development Board, helping convert the outreach into investment commitments. The development is a setback for Tamil Nadu, which had also engaged with the companies to attract fresh investments or expansions. Hwashin and Seoyon already have operations in Tamil Nadu, while Iwamet had registered an entity in the state. The latest commitments demonstrate how targeted investor engagement is becoming increasingly important in determining where global manufacturers establish their next production facilities. Strengthening Anantapur Automotive Hub The proposed investments could help Anantapur develop a more integrated automotive manufacturing cluster, supported by Kia's established presence and a growing base of component suppliers. Locating component manufacturing closer to vehicle assembly operations can improve delivery coordination, reduce dependence on long-distance transportation and help manufacturers manage inventory more efficiently. The projects could also generate demand for ancillary services, including warehousing, industrial transportation, material handling and other supply chain operations. However, these benefits will depend on the implementation of the proposed projects and the development of supporting industrial infrastructure. The investment commitments also reflect the broader competition between Andhra Pradesh and Tamil Nadu for South Korean manufacturing investments. While Tamil Nadu has an established automotive ecosystem and a substantial Korean industrial presence, Andhra Pradesh is seeking to attract suppliers by building on its existing manufacturing base and strengthening its investment facilitation efforts. The proposed facilities mark a step towards expanding Andhra Pradesh's role in India's automotive supply chain. If implemented as planned, the investments could strengthen local sourcing capabilities, generate employment and create opportunities for supporting logistics businesses, further positioning Anantapur as an emerging automotive manufacturing destination. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
India’s major logistics markets recorded significantly faster rental growth than the broader Asia-Pacific region in the first half of 2026, as manufacturing activity, domestic consumption and supply-chain diversification continued to support demand for modern warehousing space. Data from Knight Frank shows prime logistics rents increased 5.3% year-on-year in Mumbai, 5.2% in Delhi-NCR and 4.4% in Bengaluru. By comparison, logistics rents across the Asia-Pacific market increased 1.2% on a half-year-on-half-year basis during the same period. The stronger performance in India reflects sustained requirements from manufacturers, retailers, e-commerce companies and third-party logistics providers. Companies are increasingly looking for facilities capable of handling larger inventories, automation and more complex distribution networks. Mumbai posted the highest annual rental growth among the three Indian markets tracked by Knight Frank. Delhi-NCR recorded prime rents of ₹22.30 per sq ft per month. In Bengaluru, prime logistics rents rose 2.2% over six months and 4.4% annually to ₹23.50 per sq ft per month. The rental gains come as occupiers become more selective about the type and location of logistics facilities they lease. Rather than simply adding capacity, companies are increasingly assessing warehouse efficiency, connectivity, technology integration and the ability of facilities to support more sophisticated supply-chain operations. This has strengthened demand for professionally managed, institutional-grade warehouses, particularly along established manufacturing and consumption corridors. The trend also has implications for developers and investors. Rising rents in established logistics markets are improving the potential returns from modern industrial and warehousing assets, while occupier requirements are encouraging larger and better-specified developments. India’s rental performance stands in contrast to a more moderate logistics property market across Asia-Pacific. Knight Frank data showed that 15 of the 18 cities tracked in the region recorded either stable or higher rents during the period, although overall rental growth remained restrained. Higher availability in some East Asian markets has limited pricing pressure. Leasing activity in several parts of the region is increasingly being driven by companies relocating, consolidating facilities or moving into better-quality warehouses rather than by significant expansion of their overall logistics footprints. The regional outlook is also being shaped by investments in semiconductor and advanced manufacturing supply chains. Such industries typically require specialised logistics infrastructure and could generate additional demand for strategically located warehousing and industrial facilities. For India, the combination of manufacturing expansion, domestic consumption and efforts by companies to diversify supply chains provides a relatively strong demand base for logistics real estate. The market is therefore moving beyond the earlier emphasis on adding warehouse capacity. Location, operating efficiency, facility specifications and the ability to support increasingly complex supply chains are becoming more important factors in determining demand and rental performance. India’s leading logistics hubs are consequently entering the next phase of the property cycle with rental growth running ahead of the broader Asia-Pacific market, although the pace of future increases will depend on the balance between new supply and occupier demand. Follow CARGOCONNECT for more such updates.
India and Japan have reaffirmed their commitment to expanding their strategic partnership, placing greater emphasis on the Indo-Pacific region, maritime cooperation, resilient supply chains, and emerging technologies. During bilateral discussions between Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi, both nations agreed to deepen collaboration across defence, trade, technology, energy, and logistics, reflecting their shared vision for a secure and economically integrated Indo-Pacific. A major outcome of the talks was the decision to strengthen maritime cooperation through enhanced naval collaboration, maritime domain awareness, and joint efforts to ensure freedom of navigation across critical sea lanes. The leaders underscored the importance of maintaining a rules-based international order, particularly as global trade increasingly depends on secure maritime routes linking Asia with the rest of the world. From a supply chain perspective, India and Japan announced significant initiatives to build more resilient and diversified manufacturing ecosystems. Both countries agreed to accelerate cooperation in semiconductor production, advanced electronics, artificial intelligence, and critical technologies to reduce dependence on concentrated global supply networks. Japanese companies also committed fresh investments worth approximately USD 12.5 billion across manufacturing, infrastructure, logistics, clean energy, and industrial development projects in India, reinforcing the country's position as a preferred destination for global supply chain diversification. The two sides also unveiled their first joint defence technology project, marking a new chapter in bilateral defence industrial cooperation. The initiative is expected to encourage technology transfers, collaborative research, and manufacturing partnerships while strengthening regional security architecture. Energy security emerged as another key pillar of the partnership. India and Japan agreed to expand collaboration in clean energy, green hydrogen, renewable power, and next-generation energy technologies, supporting both nations' long-term sustainability goals while creating opportunities for green logistics and low-carbon supply chains. Trade facilitation and infrastructure development also featured prominently in the discussions. Both leaders expressed their commitment to improving connectivity through quality infrastructure, digital trade, and logistics modernisation, enabling smoother movement of goods across regional markets. The renewed India-Japan partnership is expected to play a pivotal role in enhancing supply chain resilience across the Indo-Pacific at a time when geopolitical uncertainties continue to reshape global manufacturing and logistics networks. With growing cooperation spanning defence, technology, investment, maritime security, and infrastructure, both countries are positioning themselves as trusted partners in building secure, sustainable, and diversified regional supply chains that support long-term economic growth. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
