More talks likely between India, China to address trade concerns, imbalance, supply chain: Trade Secy

India's overall trade deficit shrank to $9.41 billion in August 2026, down from $11.62 billion in the same period last year, as exports surged ahead of imports, according to official trade figures. Merchandise exports climbed by 26.12% to $43.81 billion, while imports rose to $70.67 billion. This led to a merchandise trade deficit of $26.86 billion, a decline from $27.20 billion in the previous year.

Commerce secretary Rajesh Agrawal attributed the narrowing deficits to a powerful export growth trend in August. Merchandise exports increased from $34.74 billion in August 2025 to $43.81 billion in August 2026, a 26.12% rise in dollar terms and a 37.59% increase in rupee terms. Imports also grew, reaching $70.67 billion in August 2026 from $61.96 billion a year earlier.

Services exports expanded by 24.61% year-on-year to $38.87 billion, while services imports rose to $21.42 billion. India's exports to key partners like China, Singapore, South Africa, Malaysia, the US, the European Union, and BRICS countries grew significantly. Exports of engineering goods, petroleum, chemicals, and textiles performed well, while gold imports fell by 57.7%. The export growth was supported by a diverse mix of commodities and countries.