India’s August Export Figures Hit Record, Deficit Shrinks

NEW DELHI, September 15 – Government data released on Tuesday shows that India’s goods exports surged 26.1% year over year in August, reaching a historic $43.81 billion. The performance marks the best month ever for Indian exports and highlights the sector’s robust momentum.

The trade deficit fell to $26.86 billion in August, a modest improvement over the $27.22 billion recorded a year earlier. The deficit was $32 billion in July.

Imports of goods increased 26% YoY to $72.67 billion, slightly lower than the July level of $76.22 billion. On a month‑to‑month basis, export values slipped from $44.24 billion in July.

Commerce Ministry Secretary Rajesh Agrawal explained that the export gains were driven by engineering equipment, petroleum products, chemicals and textiles, with the United States, European Union and BRICS nations accounting for the largest share of demand.

Gold imports dropped dramatically to $2.3 billion in August, roughly half of the $5.4 billion reported for the same month in 2025.

RBI data for the April‑June quarter of FY2024 indicates a current‑account deficit of $4.2 billion, equal to 0.5% of GDP, despite rising global oil, LPG and fertilizer prices linked to the West Asian crisis. The comparable quarter last year saw a deficit of 0.4% of GDP.

Bloomberg reports that the RBI’s Foreign Currency Non‑Resident (Bank) deposit scheme has spurred a sharp rise in dollar inflows, positioning India as the world’s fourth‑largest holder of foreign‑exchange reserves. In the week ending September 4, reserves rose by $44.9 billion to a record $785.7 billion, moving India ahead of Russia and behind China, Japan and Switzerland.