India’s Merchandise Exports Rise 26.1% in August 2026, Trade Deficit Narrows to US$ 26.9 Billion
- IBEF
- September 18, 2026
India’s merchandise exports rose 26.1% year-on-year (YoY) to Rs. 4.13 lakh crore (US$ 43.8 billion) in August 2026, accelerating from 19.6% growth in July, while slower import growth helped narrow the merchandise trade deficit to Rs. 2.53 lakh crore (US$ 26.9 billion) from Rs. 3.02 lakh crore (US$ 32 billion) in July. Core exports, excluding oil and gems and jewellery, increased 22.7% in August compared with 14.9% in July. Gems and jewellery exports returned to growth at 0.7%, while oil exports increased 63.3%. Shipments to the US rose 21.8% YoY, while exports to Malaysia, Singapore and Japan also gained momentum. However, exports to the UAE and Saudi Arabia declined 26.1% and 17.5%, respectively, amid disruptions in West Asia. Agricultural exports also gained momentum, supported by higher shipments of rice and marine products, while meat, dairy and poultry exports continued to record double-digit growth.
Imports increased 14.1% YoY to Rs. 6.67 lakh crore (US$ 70.7 billion) in August, compared with 17.5% growth in July. The moderation was mainly driven by a 34.8% decline in gems and jewellery imports, including a 57.7% fall in gold imports, while core import growth eased to 18.9%. Oil imports, however, grew 25.8%. The merchandise trade deficit narrowed to Rs. 2.53 lakh crore (US$ 26.9 billion) in August from Rs. 3.02 lakh crore (US$ 32 billion) in July and Rs. 2.56 lakh crore (US$ 27.2 billion) a year earlier. Services trade continued to provide support, with the preliminary services surplus estimated at Rs. 1.65 lakh crore (US$ 17.5 billion) in August, compared with Rs. 1.66 lakh crore (US$ 17.6 billion) in July and Rs. 1.47 lakh crore (US$ 15.6 billion) a year earlier. Crisil Intelligence expects crude oil prices to average Rs. 8,305.44–8,777.34 (US$ 88-93) per barrel in FY27 and projects the current account deficit to widen to 1.5% of Gross Domestic Product (GDP), from 0.6% in FY26.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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