India’s August exports up 26% amid lower US tariff, rupee fall

India's goods exports surged 26% in August, fueled by a 20% increase in shipments to the US, buoyed by reduced tariffs. The US had imposed a 50% tariff on Indian goods earlier in the month, but this was reduced after the decline in tensions. Exports to the US jumped over 21% to $8.3 billion, compared to $6.8 billion in the previous month, marking the highest growth in this sector this year.

The country's exports also benefited from a depreciation of its domestic currency by over 10%, which further boosted the export growth to $43.81 billion, up from $34.74 billion in August 2025. Gold imports, which usually drive the growth, declined sharply to $2.30 billion, resulting in a goods trade deficit of $26.86 billion, down from $27.20 billion in the previous month.

Commerce Secretary Rajesh Agarwal attributed this growth to the lower import growth compared to export growth, thereby shrinking the trade deficit.