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India’s August Trade Deficit Narrows As Exports Surge
India sells goods to other countries and also buys goods from them.
In August, India’s sales abroad grew faster than its purchases from abroad.
This helped reduce the gap between what India exported and imported.
The gap was $26.86 billion in August.
Exports grew 26% compared with August last year, while imports grew 14%.
From April through August, India exported $215.91 billion worth of goods.
India still had a much larger total goods deficit of about $147 billion during those five months.
Exports made up 14% of the country’s economy in the first quarter of FY27.
India’s merchandise trade deficit fell to $26.86 billion in August, from $27.22 billion a year earlier and $31.98 billion in July.
Merchandise exports rose 26% year-on-year to $43.81 billion, while imports increased 14% to $70.67 billion.
Exports totaled $215.91 billion during April-August, up nearly 18% from the same period a year earlier.
Imports reached about $363 billion in the first five months of the financial year, leaving a trade deficit of approximately $147 billion.
Merchandise exports accounted for 14% of GDP in Q1FY27, recovering from 11.3% in FY26 and returning to the level last seen in FY23.
- Who
- India and its merchandise exporters and importers, based on data from the Department of Commerce.
- What
- India’s merchandise trade deficit narrowed to $26.86 billion in August as exports grew faster than imports.
- Where
- India’s international merchandise trade.
- When
- August; the cumulative figures cover April-August, and the export-to-GDP share is reported for Q1FY27.
- Why
- Exports increased 26%, faster than the 14% rise in imports, reducing the monthly trade gap.
Key facts
- August trade deficit
- $26.86 billion
- August merchandise exports
- $43.81 billion, up 26% year-on-year
- August merchandise imports
- $70.67 billion, up 14% year-on-year
- April-August exports
- $215.91 billion, up nearly 18% year-on-year
- April-August imports
- Approximately $363 billion, up around 18% year-on-year
- April-August trade deficit
- Approximately $147 billion
- Merchandise exports share of GDP
- 14% in Q1FY27
Sources
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