Exports rise 6.7% to $35.1 bn, trade deficit shrinks to $26.49 bn in Aug

New Delhi: India’s exports rose 6.7 per cent to $35.1 billion in August annually, while imports declined 10.12 per cent to $61.59 billion, according to government data released on Monday.

Gold imports were down nearly 56 per cent in August, helping to trim merchandise trade deficit to $26.49 billion in August, as against $35.64 billion in the year-ago month.

The US was top exporting destination for India at $6.86 billion showing a growth of 7.15 per cent year-on-year, followed by the UAE ($3.24 billion), the Netherland ($1.83 billion), China ($1.21 billion) and the UK (1.14 billion) during August.

Trade tensions have been simmering between India and the US, with the latter slapping steep tariffs on Indian goods.

On the other hand, India imported maximum goods from China at $10.91 billion, followed by Russia ($4.83 billion), UAE ($4.66 billion), the US (3.6 billion), and Saudi Arabia ($2.5 billion).

According to the data released by the ministry of commerce, cumulative merchandise and services exports increased to $69.16 billion in August, compared to $63.25 billion in corresponding month last year.

The combined imports were valued at $79.04 billion compared to $84.99 billion in August 2024, leaving a trade deficit of $9.88 billion.

The cumulative exports (merchandise and services) during April-August 2025 is estimated at $349.35 billion, as compared to $329.03 billion in April-August 2024, showing a growth of 6.18 per cent.

Major drivers of merchandise exports growth in August 2025 include electronic goods ($2.93 billion), engineering goods ($9.9 billion), gems and jewellery ($2.31 billion), petroleum products ($4.48 billion) and drugs and pharmaceuticals ($2.51 billion).

As per the data, India imported vegetable oils worth $2 billion, fertilisers worth $1.65 billion; coal, coke and briquettes worth $2 billion; petroleum products worth 13.26 billion; chemicals worth $2.49 billion, and electronic items worth $9.73 billion in August.

Gold imports declined 56.67 per cent to $5.43 billion in August from $12.55 billion in the year-ago month.

The commerce ministry data showed non-petroleum, non-gems and jewellery (gold, silver and precious metals) imports in August 2025 were $41.02 billion compared to $41.41 billion in August 2024.

The estimated value of services export for August 2025 was $34.06 billion as compared to $30.36 billion in the year-ago month. Value of services imports were estimated at $17.45 billion as compared to $16.46 billion in August 2024.

The estimated value of service exports during April-August 2025 was $165.22 billion and imports at $84.25 billion.

This led to a trade surplus of $80.97 billion during April-August 2025 as compared to $68.25 billion in the year-ago period.

Commenting on the trade data, FIEO President S C Ralhan said that the 6.7 per cent year-on-year growth in exports for August 2025 is a welcome and encouraging sign for India’s export sector, especially in light of ongoing global headwinds and geopolitical uncertainties.