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India’s August exports surge as tariffs ease and rupee weakens
India sold many more goods to other countries in August than it did a year earlier.
Total goods exports rose by 26%.
Sales to the United States grew especially quickly.
Indian products faced lower US tariffs this year than they did last year.
The rupee also lost more than 10% of its value, which can make exports more competitive.
However, the growth partly reflects a weaker export base from last year.
Some industries, such as engineering, electronics and automobiles, performed strongly.
Other sectors, including textiles, leather, tea and jute, declined.
Imports grew more slowly, partly because India bought much less gold.
This helped reduce India’s goods trade deficit.
India’s goods exports rose 26% to $43.81 billion in August, up from $34.74 billion a year earlier.
Exports to the United States increased more than 21% to $8.3 billion from $6.8 billion.
India faced 10% tariffs in August this year, compared with overall tariffs of 50% by August 27, 2025.
A rupee depreciation of more than 10% supported exports, particularly high-tech products such as machinery and electronics.
Goods imports rose 14.05% to $70.67 billion, while lower gold imports helped narrow the trade deficit to $26.86 billion.
- Who
- Indian exporters, the Ministry of Commerce, Commerce Secretary Rajesh Agarwal, economists and the Federation of Indian Export Organisations.
- What
- India’s goods exports rose 26% in August, while imports increased 14.05% and the merchandise trade deficit narrowed.
- Where
- India’s exports to global markets, particularly the United States.
- When
- August this year, compared with August 2025; the data was released Tuesday.
- Why
- Lower US tariffs, a rupee depreciation of more than 10%, export-market diversification and sharply lower gold imports influenced the results.
Optimistic export outlook
Cautious interpretation
Meaning of the export increase
Optimistic export outlook
The Federation of Indian Export Organisations described the 26.12% growth as evidence of Indian exporters’ resilience, competitiveness and adaptability.
Cautious interpretation
The increase came from a lower comparison base because US tariffs had already begun hurting Indian exports in August 2025.
Role of the rupee
Optimistic export outlook
A weaker rupee is supporting export competitiveness, especially in high-margin and high-tech products.
Cautious interpretation
Economists and the cited HSBC report indicate that the benefit is uneven: high-tech exports respond more strongly, while mid-tech and several labour-intensive sectors show limited or negative performance.
Breadth of export growth
Optimistic export outlook
Growth in exports to multiple markets, automobiles, electronics, engineering goods, chemicals and pharmaceuticals suggests a more diversified export basket.
Cautious interpretation
Several sectors declined during the April-June quarter, including textiles, leather, tea, jute, ceramics and glassware, showing that export performance remains uneven.
Key facts
- August exports
- $43.81 billion, up 26% from $34.74 billion in August 2025.
- Exports to United States
- $8.3 billion, up more than 21% from $6.8 billion.
- US tariffs
- Indian goods faced 10% tariffs this August, compared with overall tariffs of 50% by August 27, 2025.
- August imports
- $70.67 billion, up 14.05% from $61.96 billion a year earlier.
- Gold imports
- $2.30 billion, down from $5.44 billion in August 2025.
- Merchandise trade deficit
- $26.86 billion this August, compared with $27.20 billion in August 2025.
- Currency movement
- The domestic currency depreciated by more than 10%.
Quotes
Rajesh Agarwal
India’s Commerce Secretary
“Automobile exports also recorded a strong 22.2% year-on-year increase, led by two- and three-wheelers, while gems and jewellery exports remained positive, rising 3.14% to $2.30 billion.”
indianexpress.com
“Goods import growth is lower than export growth. This has helped the goods trade deficit decline from $26.86 billion in August this year compared to $27.20 billion in August 2025”
indianexpress.com
Sources
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