India’s merchandise
exports surge by a phenomenal 26.12% to US$ 43.81 Billion in August; FIEO sees
broadening of export markets
New Delhi, September 15, 2026: India’s merchandise
exports registered a phenomenally strong 26.12% year-on-year growth in August
2026, rising to US$ 43.81 billion, compared with US$ 34.74 billion in August
2025. Overall exports of merchandise and services are estimated at US$ 82.68 billion,
registering a robust 25.41% growth over August 2025. India’s merchandise
imports stood at US$ 70.67 billion during August 2026, while the merchandise
trade deficit narrowed marginally to US$ 26.86 billion, compared with US$ 27.22
billion in August 2025. Overall imports of merchandise and services were
estimated at US$ 92.09 billion, resulting in an overall trade deficit of US$
9.41 billion.
Commenting on the trade data, Mr S C
Ralhan, President, FIEO, said “the 26.12 per cent growth in merchandise exports
in August is a very encouraging performance and yet again reflects the
resilience, competitiveness and adaptability of Indian exporters. Equally
significant is the broadening of India’s export markets, which indicates that
our exporters are increasingly leveraging new and emerging opportunities while
strengthening their presence in traditional markets.”
Mr Ralhan noted that the April–August
2026-27 period has also maintained strong momentum. Merchandise exports
increased by 17.85% to US$ 215.91 billion, while overall exports of merchandise
and services rose 15.55% to US$ 399.27 billion. Services exports are estimated
to have grown 12.95% during the period. He further said that encouraging export
growth across markets such as China, Singapore, Germany, South Africa,
Malaysia, Tanzania, Hong Kong, Australia, Spain and Sri Lanka points towards
greater diversification of India’s export basket. Exports to BRICS countries
grew 13.3% during April–August 2026, while exports to China increased 38.71%.
Shipments to the US grew 6.17%, while exports to the European Union increased
3.84%.
“The diversification of markets is
particularly important in the present global environment. Stronger engagement
with BRICS, emerging economies and other high-potential markets will help
Indian exporters build greater resilience and reduce concentration risks,” Mr
Ralhan added.
The export performance in August was
supported by a broad-based improvement across several key sectors, with
engineering goods, petroleum products, electronic goods and chemicals emerging
among the important contributors to merchandise export growth. Automobile
exports also recorded a strong 22.2% year-on-year increase, led by two- and
three-wheelers, while gems and jewellery exports remained positive, rising
3.14% to US$ 2.30 billion. The continued expansion of electronics and
engineering exports, along with the resilience of chemicals, pharmaceuticals
and other manufacturing-intensive sectors, indicates a strengthening of India's
diversified export basket.
Mr Ralhan added that the sectoral
performance is particularly encouraging as growth is not confined to a single
export segment. Engineering, electronics, chemicals, petroleum products,
automobiles and other value-added sectors are contributing to the expansion of
India’s export basket. At the same time, the composition of imports underlines
the need to further strengthen domestic manufacturing and value chains,
particularly in critical industrial and technology-intensive inputs.”
Further on the import side, petroleum
and energy products, electronic goods and other industrial inputs continued to
account for significant import demand, reflecting domestic production and
consumption requirements, while gold imports declined sharply to around US$ 2.3
billion, helping moderate the merchandise trade deficit.
Mr Ralhan emphasised that sustaining
the export momentum would require continued focus on competitive trade finance,
logistics and infrastructure, market diversification, ease of doing business
and targeted support for MSMEs and emerging exporters. “With merchandise
exports already growing 17.85 per cent in the first five months, exporters have
demonstrated a strong foundation for further expansion. A coordinated effort to
address cost competitiveness, logistics, finance and market-access challenges
can help India convert this momentum into sustained export growth during the
remainder of FY 2026-27,” he said.
