India’s Exports Surge 25% in August as Electronics, Engineering Goods Drive Trade Growth

India recorded a sharp expansion in exports in August 2026, with combined merchandise and services exports estimated at $82.68 billion, up 25.41% from $65.93 billion in August 2025. The latest trade data point to strong growth across several major industrial export categories, led by electronics, petroleum products and engineering goods.

Imports also increased during the month, but at a slower pace than exports. Combined merchandise and services imports were estimated at $92.09 billion, compared with $77.55 billion a year earlier, representing growth of 18.75%. As a result, the overall trade deficit for August narrowed to $9.41 billion, from $11.62 billion in the corresponding month last year.

The figures were released by the Ministry of Commerce and Industry on September 15.

Merchandise Exports Rise to $43.81 Billion

India’s merchandise exports reached $43.81 billion in August 2026, compared with $34.74 billion in August 2025, marking a strong year-on-year expansion. Merchandise imports increased from $61.96 billion to $70.67 billion over the same period.

The composition of export growth is particularly significant because the improvement extended across several major manufacturing and industrial categories rather than being concentrated in a single sector.

Electronic goods emerged as one of the strongest performers, with exports climbing 89.82% from $2.93 billion in August 2025 to $5.55 billion in August 2026. The sharp increase reinforces the growing importance of electronics within India’s merchandise export basket.

Engineering goods, traditionally one of India’s largest manufactured export categories, also registered substantial growth. Exports increased 24.86%, from $9.87 billion to $12.32 billion.

Petroleum product exports rose 63.27%, from $4.17 billion in August last year to $6.81 billion, while exports of organic and inorganic chemicals increased 16.38% to $2.80 billion.

Cotton yarn, fabrics, made-ups and handloom products also recorded growth of 13.79%, rising from $0.99 billion to $1.12 billion.

Export Growth Extends Beyond Petroleum and Jewellery

The underlying merchandise figures also show growth outside petroleum and precious commodities.

Non-petroleum and non-gems and jewellery exports reached $34.68 billion in August, compared with $28.26 billion a year earlier. This is important because the category strips out two segments that can be heavily influenced by movements in international commodity prices.

Non-petroleum exports as a whole stood at $37 billion, up from $30.57 billion in August 2025.

Several other export categories posted strong year-on-year increases during the month. Iron ore exports rose 126.3%, while meat, dairy and poultry products increased 37.08%. Handicrafts excluding handmade carpets grew 29.63%, marine products 27.76%, plastic and linoleum products 18.92%, and coffee exports 17.08%.

Rice, pharmaceuticals, cashew, carpets and gems and jewellery also registered positive growth.

April–August Exports Reach Nearly $400 Billion

The improvement in August strengthened India’s overall export performance during the first five months of the 2026-27 financial year.

Combined merchandise and services exports during April–August 2026-27 were estimated at $399.27 billion, compared with $345.55 billion during the corresponding period of 2025-26. This represents growth of 15.55%.

Merchandise exports during the five-month period increased 17.85%, from $183.21 billion to $215.91 billion.

Non-petroleum exports reached $180.61 billion, compared with $157.89 billion a year earlier, while exports excluding both petroleum and gems and jewellery increased from $146.52 billion to $168.69 billion.

The figures suggest that India’s export expansion during the current financial year is being supported by a broader range of manufactured and processed goods.

Services Continue to Provide a Large Trade Surplus

India’s services sector continued to play an important role in supporting the country’s external trade position.

Services exports for August 2026 are estimated at $38.87 billion, compared with $31.19 billion in August 2025. Services imports are estimated at $21.42 billion, against $15.59 billion a year earlier.

For the April–August period, services exports were estimated at $183.36 billion, compared with $162.34 billion during the corresponding period last year. Services imports increased from $82.40 billion to $96.65 billion.

Despite the rise in imports, India generated an estimated services trade surplus of $86.71 billion during the first five months of the financial year, providing an important counterweight to the country’s much larger merchandise trade deficit.

The Commerce Ministry has clarified that the latest services-sector data available from the Reserve Bank of India are for July 2026. The August services figures are therefore estimates and may subsequently be revised.

Merchandise Trade Deficit Remains a Pressure Point

While export growth has accelerated, the data also underline the continuing pressure created by India’s import requirements.

Merchandise imports during April–August increased from $307.09 billion last year to $363 billion this year. The merchandise trade deficit consequently widened from $123.88 billion to $147.09 billion.

When merchandise and services are considered together, total imports during April–August reached $459.65 billion, compared with $389.49 billion a year earlier. The combined trade deficit therefore stood at $60.38 billion, wider than the $43.94-billion deficit recorded during the same period of 2025-26.

The August numbers nevertheless offered a more favourable monthly picture. Export growth of 25.41% exceeded import growth of 18.75%, allowing the combined monthly deficit to narrow from $11.62 billion to $9.41 billion.

Electronics Becoming a Major Export Growth Engine

Among the most notable features of the latest trade data is the rapid expansion of electronics exports.

With electronic goods exports approaching $5.6 billion in a single month and growing almost 90% year-on-year in August, the sector is increasingly emerging alongside engineering goods, chemicals, pharmaceuticals and petroleum products as an important component of India’s export base.

The broader April–August figures reinforce that trend. India’s merchandise exports are growing considerably faster than during the corresponding period last year, while non-petroleum exports and exports excluding petroleum and gems and jewellery are also advancing strongly.

The challenge will be to sustain that momentum while managing the faster expansion of imports over the financial year as a whole. For August, however, the combination of strong manufactured exports, rising services earnings and a narrower monthly overall trade deficit provides one of the stronger trade performances recorded so far in 2026-27.

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