India’s overall trade deficit narrowed to USD 9.41 billion in August 2026 from USD 11.62 billion a year earlier. Total exports surged 25.4% year-on-year to USD 82.68 billion, showing strengthening export momentum and market diversification.
India’s overall trade deficit narrowed sharply to USD 9.41 billion in August 2026 from USD 11.62 billion a year earlier, even as total exports surged 25.4 per cent year-on-year to USD 82.68 billion, Commerce Secretary Rajesh Agrawal said, pointing to strengthening export momentum and diversification across commodities and global markets.
“The export growth momentum accelerated further in August,” Agrawal said, noting that overall exports had risen from USD 65.93 billion in August 2025 to USD 82.68 billion this year.
Merchandise Trade Performance
The trade data released on Tuesday showed merchandise exports at USD 43.81 billion in August 2026, up 26.12 per cent from USD 34.74 billion a year earlier. Merchandise imports stood at USD 70.67 billion, resulting in a merchandise trade deficit of USD 26.86 billion, lower than USD 27.20 billion in August 2025.
Agrawal said the decline in both the overall and merchandise trade deficits was a positive development. “Overall trade deficit has also gone down substantially in the current August month,” he said, while noting that the merchandise trade deficit had also declined from the previous year.
Key Drivers of Imports and Exports
Energy products, including petroleum, crude oil and coal, coke and briquettes, remained among the major contributors to the trade deficit during the first five months, while electronic goods were another significant driver of import growth.
Strong Export Growth Across Sectors
On the export front, Agrawal said the strong performance was being driven by a “dynamic mix of commodities and key partner countries”, with engineering goods, petroleum products, chemicals and textiles performing well. Electronic goods exports rose around 30 per cent in the first five months, engineering goods more than 20 per cent, organic and inorganic chemicals 14 per cent and marine products more than 14 per cent.
Export Market Diversification
He also highlighted the diversification of India’s export markets. Exports to China rose 39 per cent, Singapore more than 97 per cent, South Africa 58 per cent and Malaysia more than 75 per cent. BRICS exports grew 13.3 per cent to USD 34.5 billion during the first five months.
Volume and Value Growth
Agrawal said the export surge was not merely value-led, but also reflected higher volumes. Of 168 principal commodities, 68 recorded both volume and value growth, indicating that the expansion was supported by stronger manufacturing and increased shipment volumes rather than being driven solely by price effects. (ANI)
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