India’s trade deficit has decreased to $9.41 billion in August 2026, down from $11.62 billion in the same month of the previous year. This improvement has been attributed to a faster increase in exports compared to imports, as per the latest official trade statistics. The country’s trade figures illustrate a significant change in its economic landscape as it continues to navigate global market fluctuations.

Growth in Exports and Imports

Overall exports, which comprise both merchandise and services, experienced a substantial year-on-year increase of 25.41 per cent, reaching an estimated $82.68 billion in August. This marks a notable rise from $65.93 billion in August 2025. Meanwhile, imports also rose, escalating to $92.09 billion from $77.55 billion in the same period, reflecting the rising demand for goods and services.

Merchandise exports demonstrated strong performance in August, rising by 26.12 per cent in dollar value to $43.81 billion compared to $34.74 billion the previous year. In rupee terms, these exports increased by 37.59 per cent to Rs 4.18 lakh crore, up from Rs 3.04 lakh crore in August 2025. This growth underscores the resilience of India’s manufacturing and export sectors in a challenging global environment.

Although merchandise imports also rose, they did so at a slower rate, increasing to $70.67 billion in August 2026 from $61.96 billion in August of the prior year. The divergence in growth rates between exports and imports has played a crucial role in narrowing the trade deficit, suggesting a strengthening of India’s economy.

Performance of Services Trade

The services sector continues to show robust performance, with services exports estimated at $38.87 billion in August, marking a year-on-year growth of 24.61 per cent from $31.19 billion. In rupee terms, services exports increased from Rs 2.73 lakh crore in August 2025 to Rs 3.71 lakh crore in August 2026, reflecting a strong demand for various services, including information technology and consultancy.

Services imports also experienced an uptick, rising to $21.42 billion in August from $15.59 billion in the same month last year. This growth in both exports and imports within the services sector is indicative of a dynamic market that has adapted to post-pandemic recovery trends.

Overall, India’s total exports in rupee terms are approximated to have grown by 36.81 per cent year-on-year, reaching Rs 7.89 lakh crore in August 2026 from Rs 5.77 lakh crore in August 2025. This significant figure highlights the resilience of Indian commerce amid global economic shifts and showcases the potential for future growth.

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