India's August trade gap narrows as exports surge 26% year-on-year
India's trade deficit fell to $26.86 billion in August, helped by a 26% jump in goods exports that outpaced a 14% rise in imports.
The Department of Commerce reported that India's trade deficit narrowed to $26.86 billion in August, down from $27.22 billion a year ago and $31.98 billion in the previous month. Goods exports surged 26% year-on-year to $43.81 billion, far outpacing the 14% rise in imports, which totaled $70.67 billion. Cumulatively, April-August exports climbed almost 18% to $215.91 billion, while imports increased by the same margin to $363 billion, leaving a five-month deficit of $147 billion.
The stronger export performance lifted the sector's share of GDP to 14% in Q1 of FY27, restoring a level last seen in FY23. This rebound follows a period of declining export share amid global demand slowdown and higher U.S. tariffs in FY26.
Why it matters
A shrinking trade deficit signals improving export competitiveness and could boost India's economic growth.
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