Editorial

India’s merchandise exports touched a new monthly high of $44.24 billion in July 2026, rising 19.63 per cent year-on-year. This is a genuine achievement. Petroleum products, electronics and engineering goods led the surge, reflecting both higher global commodity realisations and the steady expansion of India’s manufacturing base. Shipments of electronics jumped over 57 per cent, while engineering goods grew nearly 18 per cent. Diversification also improved, with strong gains in markets such as China, Singapore and parts of ASEAN. Cumulative exports for April–July stood at $173.78 billion, up 17 per cent.

Yet the celebration is incomplete. Imports rose 17.5 per cent to $76.22 billion, pushing the trade deficit to $31.98 billion — a six-month high. Crude oil, electronics, fertilisers, machinery and coal were the main culprits. Crude alone accounted for roughly a quarter of the import bill. The deficit has widened even as the ratio of deficit to total trade improved marginally, according to Commerce Secretary Rajesh Agrawal. In absolute terms, however, the gap remains large and continues to exert pressure on the current account.

The dual nature of the numbers is revealing. India’s export engine is running, especially in higher-value segments such as electronics and engineering. This is the positive outcome of years of policy focus on manufacturing, PLI schemes and supply-chain diversification away from China. At the same time, the economy’s structural dependence on imported energy and intermediate goods remains stubborn. Elevated oil prices linked to West Asian tensions have amplified the import bill, just as they have boosted petroleum product exports.

Policymakers should treat the July data as both encouragement and warning. Export competitiveness must be deepened through better logistics, lower compliance costs and continued market diversification. On the import side, accelerating domestic energy production, expanding refining capacity and building strategic reserves will reduce vulnerability. Electronics manufacturing needs to move further up the value chain so that rising exports are not matched by equally large imports of components. A record export figure is welcome. A persistently wide trade deficit is not. Sustainable growth requires both sides of the ledger to move in the right direction. July’s numbers show progress, but also the distance still left to cover.

The Monsoon Session of Parliament ended on August 13, 2026, as it had begun — in disruption, distrust and diminished dignity. After 19 sittings, the Lok Sabha recorded a productivity of just 19 per cent, while the Rajya Sabha managed about 39 per cent. Twelve bills were passed, yet eleven of them cleared the Lower House with little or no debate. Only the Public Examinations (Prevention of Unfair Means) Amendment Bill received meaningful discussion. The numbers tell a story of institutional erosion.

At the heart of the deadlock lay the Opposition’s demand for accountability from Home Minister Amit Shah over alleged police excesses during the July 20 student protests at Jantar Mantar. For nearly the entire session, Shah stayed away from the House. When he finally entered the Lok Sabha on the last day, the House was adjourned within minutes amid sloganeering. The government offered discussion; the Opposition rejected what it called a last-minute “lecture.” Neither side blinked. The result was a near-washout. Parliamentary democracy rests on two pillars: the government’s right to legislate and the Opposition’s right to scrutinise. When the first is reduced to voice votes without debate, and the second is exercised only through continuous disruption, both suffer. Passing laws without discussion undermines the quality of legislation. Blocking the House indefinitely undermines the very purpose of representation. Citizens who elect MPs expect deliberation, not a prolonged standoff that yields neither answers nor accountability.

The government can claim legislative output. The Opposition can claim it forced the issue of student protests into national focus. Both claims are technically true and substantively hollow. A legislature that functions at 19 per cent capacity fails its primary duty. Question Hour virtually collapsed. Standing Committees were bypassed. Important bills, including the FCRA amendment, had to be referred elsewhere because the floor became unusable.

This pattern is not new, but its intensity is worrying. As the Winter Session approaches, both sides must recognise that perpetual confrontation is a losing strategy. The government should ensure senior ministers face the House when serious questions of executive action arise. The Opposition should allow debate rather than treat disruption as the only tool of resistance. Parliament is not a battlefield; it is the country’s highest deliberative forum. When it ceases to deliberate, democracy itself is diminished.

• SAS Kirmani