Language Settings
Select Website Language

India's Exports Surge 25.4% in August, Trade Gap Shrinks to $9.41bn

1 hour ago

India's overall trade deficit narrowed to $9.41 billion in August 2026 as exports climbed 25.4% to $82.68 billion, official data showed.

India's overall trade deficit shrank to $9.41 billion in August 2026, down from $11.62 billion in the same month a year earlier, after outbound shipments expanded faster than purchases from abroad, official figures released on Tuesday showed. Total exports, covering both goods and services, climbed 25.41% from a year earlier to an estimated $82.68 billion, up from $65.93 billion in August 2025. Imports reached $92.09 billion, compared with $77.55 billion over the same stretch.

Commerce Secretary Rajesh Agrawal said the pace of export growth had picked up during the month and described the twin drop in the overall and goods trade gaps as an encouraging sign. In rupee terms, combined exports were pegged 36.81% higher at Rs 7.89 lakh crore, against Rs 5.77 lakh crore a year before.

Goods shipments led the gains, rising 26.12% in dollar terms to $43.81 billion from $34.74 billion a year earlier. Measured in rupees, merchandise exports advanced 37.59% to Rs 4.18 lakh crore from Rs 3.04 lakh crore. Goods imports moved up to $70.67 billion from $61.96 billion, leaving a merchandise trade gap of $26.86 billion, narrower than the $27.20 billion recorded a year earlier.

That goods deficit came in well under expectations. Economists polled by Reuters had penciled in a shortfall of $32 billion, and July's figure stood at $31.98 billion. On a month-to-month basis, merchandise exports eased from $44.24 billion in July to $43.81 billion, while goods imports fell from $76.22 billion to $70.67 billion.

Services trade added to the upswing. Exports in the segment were estimated at $38.87 billion, a 24.61% rise from $31.19 billion a year earlier. Services imports grew to $21.42 billion from $15.59 billion.

A sharp pullback in gold buying helped ease the import bill. Purchases of the metal fell 57.7% to $2.3 billion in August, down from $5.4 billion a year earlier. Over the first five months of the fiscal year, petroleum, crude oil, coal, coke and briquettes stayed among the biggest contributors to the deficit, with electronic goods also fueling the rise in imports.

Chemicals, engineering and marine goods lift shipments

Agrawal credited what he called a varied blend of products and trading partners for the export strength, singling out engineering goods, petroleum products, chemicals and textiles as strong performers. In the April-to-August period, electronic goods exports rose roughly 30% and engineering goods gained more than 20%. Organic and inorganic chemicals were up 14%, while marine products grew by over 14%.

Several overseas markets took in more Indian goods. Shipments to China rose 39%, sales to Singapore jumped more than 97%, exports to South Africa increased 58%, and those to Malaysia grew more than 75%. Trade with BRICS nations rose 13.3% to $34.5 billion across the first five months. Agrawal said demand had been robust from the United States, the European Union, BRICS members and other emerging economies.

Volumes, not just prices, drive April-August gains

For the April-August stretch of the current fiscal year, merchandise exports rose 17.85% to $215.91 billion, while imports increased 18.21% to $363 billion. Agrawal stressed that the improvement rested on more than higher prices, pointing to larger shipment quantities. Of the 168 principal commodities the government tracks, 68 posted growth in both volume and value, a sign that manufacturing and dispatch volumes were rising alongside earnings.

India is also working to spread its export base across more destinations. Its trade agreement with Britain has taken effect, and a wider pact with the European Union is advancing toward implementation, Reuters reported. Both deals are expected to open up more room for Indian products abroad.

Global conditions remained unsettled during the period. Fresh strikes on Saudi Arabia and attacks on vessels in the Gulf added to unease in world markets, amid worries over a broader Middle East conflict following a strike on a Saudi oil pipeline and a push by Yemen's Houthis.

India exports August 2026, India trade deficit, merchandise exports, services exports India, Rajesh Agrawal commerce secretary, India trade data, engineering goods exports, India UK trade deal

Click here to Read More
Previous Article
India Sits on Bangladesh's Choice for New High Commissioner
Next Article
IRCTC's AskDisha 2.0 Chatbot Books Tickets and Refunds by Voice

Related Business Updates:

Are you sure? You want to delete this comment..! Remove Cancel

Comments (0)

    Leave a comment