New Delhi, July 16 -- India's trade deficit narrowed to $18.78 billion in June from $21.88 billion in May, according to government data released on Tuesday. A substantial fall in merchandise imports to $53.92 billion from $60.61 billion helped reduce the gap with exports, which also weakened to $35.14 billion in June from $38.73 billion in May, but by a few billion less.

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While declines were expected, given the global flux that trade patterns are in, India's external balances are free of stress. In this sense, trade is holding up well amid choppy seas. So far, the economy has largely been insulated in other ways too.

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