Make In India VS Made With Imports? India’s $214 Billion Trade Deficit Problem Explained

Livemint

Published26 Aug 2026, 07:43 PM IST

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India’s non-petroleum trade deficit has now overtaken and nearly doubled its petroleum deficit. In 2025-26, the total trade deficit stood at $334 billion, of which petroleum accounted for $120 billion while non-petroleum goods contributed $214 billion. Electronics is the single largest driver of the non-oil deficit, at nearly $69 billion — 20% of the overall deficit and 32% of the non-petroleum gap. India assembles phones but still imports critical components: integrated circuits alone accounted for $30 billion in net imports, with semiconductors and electric accumulators adding further pressure.