Exports up, gold imports crash: India's August trade deficit narrows to $26.49 billion
The United States remained India’s largest export destination in August with outbound shipments worth $6.86 billion, a 7.15% year-on-year increase.
- Sep 15, 2025,
- Updated Sep 15, 2025 9:52 PM IST
India's exports grew 6.7% in August to $35.1 billion while imports fell 10.12% to $61.59 billion, according to data released by the commerce ministry on Monday. The fall in imports was driven by a sharp decline in gold shipments, which plunged nearly 56%, bringing the merchandise trade deficit down to $26.49 billion compared to $35.64 billion a year earlier.
The United States remained India’s largest export destination in August with outbound shipments worth $6.86 billion, a 7.15% year-on-year increase. Other major destinations were the UAE at $3.24 billion, the Netherlands at $1.83 billion, China at $1.21 billion and the UK at $1.14 billion.
On the import side, China was the top source at $10.91 billion, followed by Russia at $4.83 billion, the UAE at $4.66 billion, the US at $3.6 billion, and Saudi Arabia at $2.5 billion.
Cumulative merchandise and services exports stood at $69.16 billion in August, compared to $63.25 billion in the same month last year. Combined imports were valued at $79.04 billion against $84.99 billion in August 2024, resulting in a trade deficit of $9.88 billion.
Between April and August 2025, cumulative exports reached $349.35 billion, up from $329.03 billion in the same period of 2024, reflecting a 6.18% growth.
Electronics, engineering goods, gems and jewellery, petroleum products and pharmaceuticals led merchandise export growth in August. Electronic goods were valued at $2.93 billion, engineering goods at $9.9 billion, gems and jewellery at $2.31 billion, petroleum products at $4.48 billion and pharmaceuticals at $2.51 billion.
Imports during the month included vegetable oils worth $2 billion, fertilisers worth $1.65 billion, coal, coke and briquettes worth $2 billion, petroleum products worth $13.26 billion, chemicals worth $2.49 billion, and electronic items worth $9.73 billion. Gold imports dropped 56.67% to $5.43 billion from $12.55 billion in August 2024. Non-petroleum, non-gems and jewellery imports stood at $41.02 billion, nearly flat from $41.41 billion last year.
Services trade showed resilience. Exports were estimated at $34.06 billion in August compared to $30.36 billion last year, while imports were at $17.45 billion against $16.46 billion. In April-August 2025, services exports reached $165.22 billion while imports stood at $84.25 billion, leaving a trade surplus of $80.97 billion, up from $68.25 billion a year earlier.
Commenting on the trade performance, Federation of Indian Export Organisations (FIEO) President S C Ralhan said, "The 6.7 per cent year-on-year growth in exports for August 2025 is a welcome and encouraging sign for India's export sector, especially in light of ongoing global headwinds and geopolitical uncertainties. The decline in imports by over 10 per cent has also helped in easing the trade deficit, which is now significantly lower compared to the same month last year."
(With inputs from PTI)
India's exports grew 6.7% in August to $35.1 billion while imports fell 10.12% to $61.59 billion, according to data released by the commerce ministry on Monday. The fall in imports was driven by a sharp decline in gold shipments, which plunged nearly 56%, bringing the merchandise trade deficit down to $26.49 billion compared to $35.64 billion a year earlier.
The United States remained India’s largest export destination in August with outbound shipments worth $6.86 billion, a 7.15% year-on-year increase. Other major destinations were the UAE at $3.24 billion, the Netherlands at $1.83 billion, China at $1.21 billion and the UK at $1.14 billion.
On the import side, China was the top source at $10.91 billion, followed by Russia at $4.83 billion, the UAE at $4.66 billion, the US at $3.6 billion, and Saudi Arabia at $2.5 billion.
Cumulative merchandise and services exports stood at $69.16 billion in August, compared to $63.25 billion in the same month last year. Combined imports were valued at $79.04 billion against $84.99 billion in August 2024, resulting in a trade deficit of $9.88 billion.
Between April and August 2025, cumulative exports reached $349.35 billion, up from $329.03 billion in the same period of 2024, reflecting a 6.18% growth.
Electronics, engineering goods, gems and jewellery, petroleum products and pharmaceuticals led merchandise export growth in August. Electronic goods were valued at $2.93 billion, engineering goods at $9.9 billion, gems and jewellery at $2.31 billion, petroleum products at $4.48 billion and pharmaceuticals at $2.51 billion.
Imports during the month included vegetable oils worth $2 billion, fertilisers worth $1.65 billion, coal, coke and briquettes worth $2 billion, petroleum products worth $13.26 billion, chemicals worth $2.49 billion, and electronic items worth $9.73 billion. Gold imports dropped 56.67% to $5.43 billion from $12.55 billion in August 2024. Non-petroleum, non-gems and jewellery imports stood at $41.02 billion, nearly flat from $41.41 billion last year.
Services trade showed resilience. Exports were estimated at $34.06 billion in August compared to $30.36 billion last year, while imports were at $17.45 billion against $16.46 billion. In April-August 2025, services exports reached $165.22 billion while imports stood at $84.25 billion, leaving a trade surplus of $80.97 billion, up from $68.25 billion a year earlier.
Commenting on the trade performance, Federation of Indian Export Organisations (FIEO) President S C Ralhan said, "The 6.7 per cent year-on-year growth in exports for August 2025 is a welcome and encouraging sign for India's export sector, especially in light of ongoing global headwinds and geopolitical uncertainties. The decline in imports by over 10 per cent has also helped in easing the trade deficit, which is now significantly lower compared to the same month last year."
(With inputs from PTI)