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Exports

India's Merchandise Exports Surge 6.7% in August, Narrowing Trade Deficit to Lowest in a Year

Strategic Insights

— 1 min read

India's merchandise exports grew 6.7% in August to $35.1 billion, driven by robust shipments of electronics, gems and jewellery, and pharmaceuticals, while imports fell more than 10%, helping narrow the trade deficit to its lowest in a year. The trade deficit, which was $35.6 billion in August 2024, came down to $26.5 billion in August 2025. This achievement is a welcome and encouraging sign for India's export sector, which has been facing global headwinds and geopolitical uncertainties.

Key Takeaways:

  • India's merchandise exports grew 6.7% in August to $35.1 billion, with electronics, gems and jewellery, and pharmaceuticals leading the growth.
  • Merchandise imports fell more than 10% to $61.59 billion, the lowest in a year, helping narrow the trade deficit to $26.5 billion.
  • The August trade deficit was above the April-July monthly average of $23.7 billion but "significantly lower" than a year ago.
  • Non-gold merchandise trade deficit moderated to $21 billion in August from $23 billion in August 2024, driven by higher exports and lower non-oil, non-gold imports.
  • India's total exports of goods and services in August stood at $69.16 billion, a 9.3% year-on-year rise, while imports dropped 7% to $79.04 billion.
  • The overall trade gap was $9.9 billion, less than half the $21.7 billion gap recorded a year earlier.
  • Electronics exports surged nearly 26% to $2.93 billion, while gems and jewellery exports climbed 15.6% to $2.31 billion and pharmaceuticals rose 6.9% to $2.51 billion.
  • Agriculture added support with shipments of rice, tea, meat and dairy products posting double-digit growth.

Statistics:

  • India's merchandise exports grew 6.7% in August to $35.1 billion.
  • Merchandise imports fell 10.1% in August to $61.59 billion.
  • Trade deficit narrowed to $26.5 billion in August 2025, the lowest in a year.
  • Non-gold merchandise trade deficit moderated to $21 billion in August.
  • Electronics exports surged 26% to $2.93 billion in August.
  • Gems and jewellery exports climbed 15.6% to $2.31 billion in August.
  • Pharmaceuticals exports rose 6.9% to $2.51 billion in August.

Sources:

  • Commerce Ministry, India
  • ICRA Ltd.
  • Federation of Indian Export Organisations (FIEO)
  • The Indian Awaaz

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