India’s August exports rise 26.1%, trade deficit narrows to $26.9 billion
India’s merchandise exports jumped 26.1% year-on-year to $43.8 billion in August, accelerating from 19.6% growth in July, while slower import growth narrowed the merchandise trade deficit to $26.9 billion from $32 billion in July.
India's merchandise exports surged 26.1% in August, reaching $43.8 billion, marking a significant 19.6% growth from July. Despite challenges, the trade deficit narrowed to $26.9 billion, signaling external trade resilience amid global disruptions. Export growth was widespread, with core exports rising 22.7%, excluding oil and gems and jewellery, which grew 0.7% after a 2.7% decline.
Oil exports remained strong, expanding 63.3%. US exports increased 21.8%, while Asian markets like Malaysia, Singapore, and Japan saw accelerated shipments. UAE and Saudi Arabia exports contracted 26.1% and 17.5%, respectively, due to West Asia disruptions. Agricultural exports, particularly rice and marine products, and sectors like meat, dairy, and poultry, saw double-digit growth.
Core exports expanded across pharmaceuticals, chemicals, engineering goods, and electronics. Labour-intensive sectors like cotton yarn, manmade yarn, and gems and jewellery also showed faster growth. Imports grew at 14.1%, slower than July's 17.5%, primarily due to a 34.8% drop in gems and jewellery imports, with gold imports falling 57.7%.
Core import growth slowed to 18.9%, down from 20.3%. Oil imports accelerated 25.8%, driven by a low statistical base. The trade deficit declined to the narrowest since March, driven by faster exports and moderated imports. However, the external sector may face challenges from higher crude oil prices and global trade disruptions, with the current account deficit expected to widen to 1.5% of GDP.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
