India is seeking fairer trade ties with China while expanding export opportunities, even as imports and the bilateral trade deficit remain concerns
India’s goods exports jumped 26.13% year‑on‑year in August 2026 to $43.81 billion, the strongest rise in the current fiscal year, while imports grew at a slower 14.1% pace, narrowing the monthly trade deficit. The surge was driven by higher petroleum product shipments and strong demand from the United States, Europe, BRICS and other emerging markets.
India’s gold imports fell 57.7% year‑on‑year to $2.3 billion in August 2026, while merchandise exports rose 26.1% to $43.81 billion, narrowing the trade deficit. The data, released by the Ministry of Commerce and Industry, also showed overall imports up 14.1% and a smaller gap between imports and exports.
BRICS Trade: India Eyes $200 Billion Exports By 2030, But Trade Deficit Raises Concerns
Indian Prime Minister Narendra Modi held a 45‑minute bilateral with Russian President Vladimir Putin at Delhi’s Bharat Mandapam during the opening day of the BRICS summit, and is slated to meet Chinese President Xi Jinping later that evening. The meetings come as India seeks to balance its ties with both powers while addressing a widening trade deficit with China and broader BRICS cooperation goals.
India’s commerce minister Piyush Goyal met Thailand’s deputy prime minister and commerce minister Suphajee Suthumpun in New Delhi to discuss expanding bilateral trade, investment and the review of the Asean‑India Trade in Goods Agreement (AITIGA). The talks highlighted a record $20.93 billion trade flow in FY2025 and a widening Indian trade deficit of about $10.8 billion.
President Trump increased pressure on the Federal Reserve to lower interest rates, threatening trade cuts with countries with trade deficits.
High-level delegation may visit China next week; market access, trade deficit and investment curbs on agenda
