India and Indonesia Report Divergent June 2026 Trade Balances

Indonesia and India reported contrasting trade performance for June 2026, with the former seeing a recovery and the latter experiencing a widening deficit.

Indonesia narrowed its trade deficit to US$0.45 billion in June, a sharp improvement from the US$1.61 billion deficit in May. This recovery was driven by a 9.72 percent rise in total exports to US$25.46 billion, particularly in non-oil and gas sectors. For the first half of 2026, the country maintained a cumulative trade surplus of US$3.58 billion, with exports growing 4.13 percent.

Conversely, India's merchandise trade deficit reached a five-month high of US$30.4 billion in June, exceeding its 12-month average of US$29.3 billion. The Government of India attributed this increase to the import of essential goods for economic growth, such as crude oil, machinery, and gold. To mitigate strategic import dependence, the government is utilizing Production Linked Incentive schemes and the National Logistics Policy to boost domestic semiconductor and renewable energy capacity.

While Indonesia's Ministry of Trade is focusing on expanding export markets to sustain its surplus, India's Ministry of Commerce and Industry maintains that its deficit reflects productive investment rather than structural weakness. India's foreign exchange reserves remained strong at US$671.6 billion as of June 2026.