India's merchandise trade deficit narrows to $26.49 billion in August

India’s merchandise trade deficit narrowed to $26.49 billion in August 2025, compared with $27.35 billion in July, as both exports and imports registered declines, the commerce ministry said on Monday.According to information,exports of goods stood at $35.10 billion in August, lower than $37.24 billion in July. Imports fell to $61.59 billion, against $64.59 billion in the previous month.Compared to August 2024, India’s merchandise exports grew 6.7 percent, while imports declined 10.1 percent. The goods trade deficit was also narrower than the $35.64 billion recorded a year earlier.
Commerce Secretary Sunil Barthwal stated, “Despite global uncertainties and trade policy uncertainties, Indian exporters have done well. It shows that the government's policy has paid off.”The key drivers of export growth in August were electronics, which surged 25.93 percent on a yearly basis, engineering goods, which recorded a 4.91 percent rise, and gems and jewellery, which posted a strong 15.57 percent increase,stated data.Federation of Indian Export Organisations (FIEO) President S C Ralhan noted that the August growth trend was encouraging amid global headwinds. He added that the over 10% fall in imports had also contributed to easing the trade deficit.On a cumulative basis, merchandise exports during April–August 2025 rose to $184.13 billion, while imports stood at $306.52 billion, both higher than last year. However, the goods trade gap widened to $122.39 billion from $120.52 billion in the same period of FY25.
The services sector provided strong support in August, with exports estimated at $34.06 billion compared to $30.36 billion last year. Imports rose to $17.45 billion from $16.46 billion.Overall exports of goods and services combined stood at $69.16 billion in August, up 9.3 percent year-on-year, while overall imports fell 7 percent to $79.04 billion.The overall trade surplus, including services, came in at $9.88 billion, notably lower than the $21.73 billion recorded in August 2024.For April–August 2025, services exports were estimated at $165.22 billion, a 10.6 percent rise on year, while imports grew 3.8 percent to $84.25 billion. The services trade surplus widened to $80.97 billion, compared to $68.25 billion a year earlier.Taking both goods and services into account, India’s overall trade surplus for April–August 2025 stood at $41.42 billion,according to information.

(Business Correspondent)