India’s exports of goods and services rose 25.4% year-on-year in August 2026, reaching $82.68 billion, as strong merchandise and services performance helped narrow the country’s overall trade deficit to $9.41 billion. The improvement highlights the continued resilience of India’s external trade despite global economic uncertainties and geopolitical challenges.
According to trade data released on Tuesday, September 15, total exports increased from $66.01 billion in August 2025 to $82.68 billion in August 2026. Imports, including goods and services, stood at $92.09 billion, resulting in an overall trade gap of $9.41 billion.
India’s merchandise exports climbed 26.12% year-on-year to $43.81 billion in August 2026. The figure represents the highest August merchandise export value in a decade, according to reports based on government trade data.
Merchandise imports increased approximately 14.1% to $70.76 billion during the month. Consequently, the merchandise trade deficit narrowed to $26.86 billion.
The export performance was supported by engineering goods, petroleum products, chemicals and textiles. Commerce Secretary Rajesh Agarwal said exporters were benefiting from demand across the United States, European Union, BRICS countries and other emerging markets.
Services continued to play a crucial role in reducing India’s overall trade deficit. Services exports reached $38.87 billion in August, while services imports stood at $21.42 billion. This generated a services trade surplus of $17.45 billion, helping offset a substantial portion of the merchandise trade gap.
April–August exports rise 17.85%
During the April–August period of fiscal 2026–27, India’s total merchandise exports increased 17.85% to $215.91 billion. Merchandise imports rose 18.21% to approximately $363 billion during the same period.
The figures indicate sustained trade activity during the first five months of the financial year, although imports continued to grow at a slightly faster pace than exports.
A significant factor behind the merchandise trade deficit’s narrowing was the decline in gold imports. Gold imports fell 57.7% year-on-year to $2.3 billion in August, compared with $5.4 billion in August 2025.
The reduction helped offset the impact of higher imports in other categories and contributed to the improvement in the merchandise trade balance.
The August export figures provide a positive signal for India’s trade outlook, with engineering goods, petroleum products, chemicals and services supporting growth. Continued demand from key markets and emerging trade opportunities could help sustain export momentum in the coming months.
However, rising import costs, global commodity prices and geopolitical disruptions remain important challenges for exporters and the broader trade balance. The government’s focus on market diversification and trade agreements is expected to remain central to efforts to strengthen India’s export competitiveness.
The latest figures underline the importance of maintaining export growth while managing import pressures to support a more balanced external trade position.