India’s merchandise exports surged 26.1% in August 2026 to $43.8 billion, marking a strong improvement in the country’s external trade performance. Merchandise imports increased 14% to $70.7 billion during the month. Commerce Secretary Rajesh Agrawal said this was the first time export growth exceeded import growth both in percentage terms and absolute value, with exports adding $9.07 billion compared to an $8.71 billion increase in imports.
The stronger export performance helped narrow India’s trade deficit to $9.4 billion in August, down from $11.6 billion in the same month last year. Including services, India’s total exports rose 25.4% to $82.7 billion, while overall imports grew 18.7% to $92.1 billion. The government stated the improvement was not solely due to a depreciating rupee.
According to the Commerce Secretary, export growth was also driven by significant volume growth across several merchandise categories, indicating stronger underlying demand in global markets. Of India’s 168 principal export commodities, 68 recorded growth in both volume and value, while another 39 showed value growth.
Services exports remained strong, rising 24.6% to $38.9 billion, though their growth was somewhat more subdued compared with merchandise exports. This broad-based export performance signals stronger global demand for Indian products and offers a positive outlook for India’s trade balance and external-sector momentum.
