New Delhi, Sep 15: India’s external trade performance improved in August, with a sharp rise in exports helping the country reduce its overall trade deficit despite continued growth in imports.
Data released for the month showed that India’s combined exports of merchandise and services increased 25.41 per cent year-on-year to an estimated $82.68 billion in August, compared with $65.93 billion during the same month last year. Total imports stood at around $92.09 billion, taking the overall trade deficit to $9.41 billion, lower than the $11.62 billion recorded a year earlier.
Goods shipments played a major role in the improvement. Merchandise exports climbed 26.12 per cent to $43.81 billion in August from $34.74 billion in the corresponding month of the previous year.
The increase was also visible in rupee terms, with merchandise exports rising 37.59 per cent to approximately Rs 4.18 lakh crore.
On the import side, merchandise purchases from overseas increased to $70.67 billion in August from $61.96 billion a year earlier. However, the stronger performance of exports helped limit the widening of the trade gap.
India’s services sector continued to provide an important boost to the country’s external trade. Services exports were estimated at $38.87 billion, representing a 24.61 per cent increase from $31.19 billion in August last year. Services imports also rose during the month to $21.42 billion from $15.59 billion.
Overall exports in rupee terms were estimated at around Rs 7.89 lakh crore in August, compared with approximately Rs 5.77 lakh crore a year earlier.
The latest figures provide encouraging signs for export-oriented industries, manufacturers and businesses involved in shipping, logistics and international supply chains. Sustained demand from overseas markets can support higher production and create opportunities for businesses looking to expand their global footprint.
The improvement in the trade balance is also important against the backdrop of continuing global economic uncertainty. Geopolitical tensions, changing trade policies, currency movements and fluctuations in energy prices remain key challenges for businesses engaged in international commerce.
India’s strong services exports, combined with rising merchandise shipments, are helping create a broader export base. This diversification could provide greater resilience to the economy as global demand conditions change.
For exporters, the focus will now be on maintaining the momentum by entering new markets, improving product competitiveness and increasing value addition within India.
The August trade figures underline the growing contribution of exports to economic activity and offer a positive indication for India’s external sector as the financial year progresses.