India's trade deficit narrows as exports rise 26% in August
Merchandise imports rose 14.1% to $70.67 billion, while gold purchases plunged nearly 58% from a year earlier.
India's trade deficit narrowed significantly in August 2026, thanks to a 26% surge in exports. Merchandise exports grew robustly by over 26%, reaching $43.81 billion, while imports increased by 14.1% to $70.67 billion. This resulted in a trade deficit of $9.41 billion for August, compared to $11.62 billion in the same month last year.
Commerce Secretary Rajesh Agrawal attributed the improvement to measures like trade diversification, bilateral deals, and restrictions on unproductive imports. Import of gold, a major component of imports, decreased sharply by nearly 58% in August 2026, falling to $2.3 billion from $5.44 billion in August 2025. Despite a higher trade deficit in the first five months of the current financial year, exports have been growing consistently.
Factors such as targeted policies, free trade agreements with various countries, and strong domestic economic expansion have contributed to this growth.
Written by urgent.news from Hindustan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
