Trade data: Exports up 6.7% to $35.1 bn in August; imports down 10% as trade deficit narrows

India’s exports grew 6.7% to $35.1 billion in August while imports fell 10.12% to $61.59 billion, helping narrow the merchandise trade deficit to $26.49 billion from $35.64 billion a year earlier, government data showed on Monday. A sharp decline of nearly 56% in gold imports also contributed to the easing of the gap.The US remained India’s top export destination at $6.86 billion, posting a year-on-year growth of 7.15%, followed by the UAE ($3.24 billion), the Netherlands ($1.83 billion), China ($1.21 billion) and the UK ($1.14 billion), PTI reported. India’s imports were highest from China at $10.91 billion, followed by Russia ($4.83 billion), the UAE ($4.66 billion), the US ($3.6 billion) and Saudi Arabia ($2.5 billion).According to the commerce ministry, combined merchandise and services exports stood at $69.16 billion in August, up from $63.25 billion a year earlier, while overall imports fell to $79.04 billion from $84.99 billion, leaving a trade deficit of $9.88 billion.For the April–August 2025 period, cumulative exports (merchandise and services) were estimated at $349.35 billion, compared with $329.03 billion in the year-ago period, marking a growth of 6.18%. Service exports in August rose to $34.06 billion from $30.36 billion, while imports were valued at $17.45 billion versus $16.46 billion in August 2024.Major drivers of merchandise exports in August included engineering goods ($9.9 billion), electronic goods ($2.93 billion), petroleum products ($4.48 billion), drugs and pharmaceuticals ($2.51 billion), and gems and jewellery ($2.31 billion). On the import side, India bought petroleum products worth $13.26 billion, electronic goods worth $9.73 billion, vegetable oils and coal worth $2 billion each, fertilisers worth $1.65 billion, and chemicals worth $2.49 billion.Gold imports declined sharply to $5.43 billion in August 2025 from $12.55 billion a year ago. Non-petroleum, non-gems and jewellery imports were $41.02 billion against $41.41 billion in August 2024.Commenting on the trade data, FIEO President S C Ralhan said the 6.7% year-on-year growth in exports is a “welcome and encouraging sign” for India’s exporters amid global headwinds and geopolitical uncertainties. He added that the over 10% fall in imports has eased the trade deficit significantly compared with the same month last year.Ralhan urged the government to step up support for MSMEs and ensure timely disbursement of export incentives so that exporters remain competitive globally, especially as major economies grapple with tariff disputes.