Merchandise exports grow at the fastest pace in a decade in August

Merchandise exports during April-August rose 17.85% to $215.91 billion, from $183.21 billion in the corresponding period last year.(Bloomberg)AI Quick ReadIndia’s merchandise exports grew at their fastest pace in a decade in August, surging 26.12% year-on-year to $43.81 billion, even as imports climbed 14% to $70.67 billion, leaving the merchandise trade deficit at $26.86 billion, provisional commerce ministry data showed on Tuesday.

Merchandise exports stood at $34.74 billion in August 2025, while imports were $61.96 billion. Including services, total exports in August were estimated at $82.68 billion, up 25.41% from $65.93 billion a year ago, while total imports rose to $92.09 billion.

The overall trade balance stood at a deficit of $9.41 billion, compared with a deficit of $11.62 billion in August 2025. Services data for August is provisional, with the latest available Reserve Bank of India (RB) data being for July.

For April-August, total exports of merchandise and services were estimated at $399.27 billion, up 15.55% from $345.55 billion in the year-ago period, while total imports rose 18.01% to $459.65 billion. The cumulative overall trade deficit widened to $60.38 billion from $43.94 billion a year ago.

Merchandise exports during April-August rose 17.85% to $215.91 billion, from $183.21 billion in the corresponding period last year. Merchandise imports increased 18.21% to $363 billion, compared with $307.09 billion a year ago.

Services exports during April-August were estimated at $183.36 billion, up 12.95% from $162.34 billion a year ago, while services imports stood at $96.65 billion, rising 17.30% from $82.40 billion. The US remained India’s largest export destination during April-August, with shipments worth $42.79 billion, followed by the United Arab Emirates at $13.59 billion and China at $9.61 billion.

Singapore, the Netherlands, the UK, Germany, South Africa, Bangladesh and Malaysia were the other major destinations, with exports of $9.50 billion, $6.95 billion, $6.15 billion, $5.33 billion, $4.82 billion, $4.72 billion and $4.36 billion, respectively.

China remained India’s largest import source during the five-month period, accounting for $65.49 billion of imports, followed by Russia at $41.44 billion and the US at $28.09 billion. The UAE, South Korea, Saudi Arabia, Singapore, Japan, Hong Kong and Germany were the other major sources, with imports of $24.36 billion, $12.10 billion, $11.81 billion, $11.40 billion, $9.71 billion, $9.41 billion and $9.16 billion, respectively.

Engineering goods remained the largest export commodity during April-August, with shipments worth $58.70 billion, followed by petroleum products at $35.31 billion and electronic goods at $26.66 billion. Organic and inorganic chemicals, drugs and pharmaceuticals, gems and jewellery, ready-made garments, cotton yarn and textiles, rice, and plastic and linoleum products were the other major export categories.

On the import side, petroleum, crude and products accounted for the largest share at $95.57 billion, followed by electronic goods at $66.48 billion and machinery, electrical and non-electrical, at $28.46 billion. Gold imports stood at $17.47 billion, while transport equipment, non-ferrous metals, coal, coke and briquettes, organic and inorganic chemicals, artificial resins and plastic materials, and vegetable oils were among the other major import categories.

Harsh Kumar is a policy reporter at Mint (HT Media Group), where he covers the Ministry of Commerce and Industry along with key departments of the Ministry of Finance, including the Department of Economic Affairs (DEA) and the Department of Financial Services (DFS).

With over five years of experience in business and economic journalism, he has developed strong expertise in tracking policy developments and their wider economic impact. He has previously worked with Business Standard, Moneycontrol, and Outlook Money, where he reported extensively on banking, financial services, and the broader economy.

Over the years, he has built a reputation for delivering accurate, insightful, and impactful stories, supported by a keen eye for detail and a consistent track record of breaking exclusive news. An alumnus of Jamia Millia Islamia, Harsh closely follows regulatory changes and key economic trends shaping India’s financial and industrial landscape.

His reporting aims to simplify complex policy issues for a wider audience while maintaining depth and credibility. Outside of work, he enjoys tracking policy developments, finding scoops, and travelling, reflecting his curiosity about how economic decisions shape everyday life.

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