Goods Exports Fall Sequentially, Rise Annually In August
Goods exports in August at $35.10 billion was lower than $37.24 billion in July and imports at $61.59 billion were lower than $64.59 during the same period: Reports
CHENNAI: India’s exports in goods fell sequentially but rose annually in August, while imports declined both sequentially and annually, leading to a smaller trade deficit compared to July as well as August last year. However, US exports grew by a nine-month low of 7.2 per cent against 25 per cent growth in the past seven months.
Goods exports in August at $35.10 billion was lower than $37.24 billion in July and imports at $61.59 billion were lower than $64.59 during the same period.
A year ago, in August 2024, merchandise exports stood at $32.89 billion in value terms, while imports stood at $68.53 billion. Exports grew 6.7 per cent, but imports declined 10 per cent against the same month last year.
India’s merchandise trade deficit for August narrowed to $26.49 billion from $27.35 billion in July as both imports and exports fell. Trade deficit also narrowed in August as against $35.64 billion in August 2024.
Exports surged, driven by higher demand for engineering goods, electronic goods and drugs and pharma, among others.
Services exports remained largely steady at $34.06 billion in August, reporting lower than $31.03 billion in July, while services imports rose to $17.45 billion from $15.40 billion during the same period.
In August combined goods and services exports stood at $69.16 billion and imports at $79.04 billion with the overall trade deficit to $9.88 billion for the month, lower than the $11.72 billion deficit in July and $21.73 billion a year ago.
“India’s merchandise exports rose by a healthy 6.7% YoY in August 2025, aided by a low base. Interestingly, the growth in India’s exports to the US slowed to a nine-month low of 7.2 per cent from 25 per cent in the first seven months of 2025, as the 25 per cent penalties over and above the 25 per cent reciprocal tariffs came into effect towards the end of the month. The penalty is likely to drive down exports to the US materially in September 2025, which should lead to a sharp dip in overall exports, while also pushing up the trade deficit in the month,” said Aditi Nayar, chief economist, ICRA.