Exports rise 6.7 pc to USD 35.1 bn in August, trade gap shrinks to USD 26.49 bn

New Delhi, Sep 15 (PTI) India's exports rose 6.7 per cent to USD 35.1 billion in August annually, while imports declined 10.12 per cent to USD 61.59 billion, according to government data released on Monday.

Gold imports were down nearly 56 per cent in August, helping to trim merchandise trade deficit to USD 26.49 billion in August, as against USD 35.64 billion in the year-ago month.

The US was top exporting destination for India at USD 6.86 billion showing a growth of 7.15 per cent year-on-year, followed by the UAE (USD 3.24 billion), the Netherland (USD 1.83 billion), China (USD 1.21 billion) and the UK (1.14 billion) during August.

Trade tensions have been simmering between India and the US, with the latter slapping steep tariffs on Indian goods.

On the other hand, India imported maximum goods from China at USD 10.91 billion, followed by Russia (USD 4.83 billion), UAE (USD 4.66 billion), the US (3.6 billion), and Saudi Arabia (USD 2.5 billion).

According to the data released by the ministry of commerce, cumulative merchandise and services exports increased to USD 69.16 billion in August, compared to USD 63.25 billion in corresponding month last year.

The combined imports were valued at USD 79.04 billion compared to USD 84.99 billion in August 2024, leaving a trade deficit of USD 9.88 billion.

The cumulative exports (merchandise and services) during April-August 2025 is estimated at USD 349.35 billion, as compared to USD 329.03 billion in April-August 2024, showing a growth of 6.18 per cent.

Major drivers of merchandise exports growth in August 2025 include electronic goods (USD 2.93 billion), engineering goods (USD 9.9 billion), gems and jewellery (USD 2.31 billion), petroleum products (USD 4.48 billion) and drugs and pharmaceuticals (USD 2.51 billion).

As per the data, India imported vegetable oils worth USD 2 billion, fertilisers worth USD 1.65 billion; coal, coke and briquettes worth USD 2 billion; petroleum products worth 13.26 billion; chemicals worth USD 2.49 billion, and electronic items worth USD 9.73 billion in August.

Gold imports declined 56.67 per cent to USD 5.43 billion in August from USD 12.55 billion in the year-ago month.

The commerce ministry data showed non-petroleum, non-gems and jewellery (gold, silver and precious metals) imports in August 2025 were USD 41.02 billion compared to USD 41.41 billion in August 2024.

The estimated value of services export for August 2025 was USD 34.06 billion as compared to USD 30.36 billion in the year-ago month.

Value of services imports were estimated at USD 17.45 billion as compared to USD 16.46 billion in August 2024.

The estimated value of service exports during April-August 2025 was USD 165.22 billion and imports at USD 84.25 billion.

This led to a trade surplus of USD 80.97 billion during April-August 2025 as compared to USD 68.25 billion in the year-ago period.

Commenting on the trade data, FIEO President S C Ralhan said that the 6.7 per cent year-on-year growth in exports for August 2025 is a welcome and encouraging sign for India's export sector, especially in light of ongoing global headwinds and geopolitical uncertainties.

The decline in imports by over 10 per cent has also helped in easing the trade deficit, which is now significantly lower compared to the same month last year.

FIEO, the apex body of exporters, urged the government for enhanced support for MSMEs and timely disbursement of export incentives to ensure our exporters remain globally competitive especially at a time when major economies across the globe are facing tariff crisis. PTI RSN NKD HVA