New Delhi, September 15 (Daily Kiran) : India’s merchandise exports saw a remarkable increase of 26.1% in August, reaching $43.81 billion compared to the previous year. This surge marks the highest performance in the country’s export history, indicating a robust trend in the export sector. The government shared this information on Tuesday.
During the same period, India also witnessed a reduction in its trade deficit, which stood at $26.86 billion in August, down from $27.22 billion in the same month last year. In July, the trade deficit was significantly higher at $32 billion.
Imports of goods also rose by 26% year-on-year, totaling $72.67 billion in August, although this was a slight decrease from July’s $76.22 billion. Month-on-month, exports fell from $44.24 billion in July.
Rajesh Aggarwal, Secretary of the Ministry of Commerce, attributed the growth in exports to increased demand for engineering goods, petroleum products, chemicals, and textiles, primarily from the United States, the EU, and BRICS nations.
Notably, gold imports dropped sharply to $2.3 billion in August, less than half of the $5.4 billion recorded in August 2025.
According to data released by the Reserve Bank of India (RBI) earlier this month, India’s current account deficit (CAD) for the April-June quarter of this fiscal year was $4.2 billion. Despite rising global prices for oil, LPG, and fertilizers due to the Western Asia crisis, this figure remained at 0.5% of GDP, compared to an estimated 0.4% in the same quarter last year.
Bloomberg data indicates that India has become the fourth-largest holder of foreign exchange reserves globally, surpassing Russia, thanks to a significant influx of dollars from the Foreign Currency Non-Resident (Bank) (FCNR(B)) deposit scheme. As of September 4, India’s foreign exchange reserves increased by $44.9 billion to a record $785.7 billion, following China, Japan, and Switzerland.
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