Electronics, engineering and petroleum shipments boost exports, while a 57.75% plunge in gold imports helps narrow the trade deficit.
NEW DELHI (Economy India): India’s merchandise exports jumped 26.12 per cent year-on-year to USD 43.81 billion in August 2026, supported by strong growth in electronics, engineering goods and petroleum product shipments.
At the same time, a sharp decline in gold imports helped narrow the country’s merchandise trade deficit to a five-month low of USD 26.86 billion, providing relief on the external trade front.
India’s August merchandise trade
Exports, imports and trade deficit in August 2026, based on the figures provided.$0$20$40$60$80ExportsImportsTrade deficit
USD billion
Imports Rise 14.1% to USD 70.76 Billion
India’s merchandise imports increased 14.1 per cent year-on-year to USD 70.76 billion in August.
The increase was driven by higher imports across several categories, including crude oil, project goods, electronic items, silver, coal and coke.
Despite the rise in the overall import bill, the sharp decline in gold imports helped contain the widening of the trade deficit.
Gold Imports Plunge 57.75%
Gold imports fell by a substantial 57.75 per cent to USD 2.3 billion during August.
The decline in gold purchases was a major factor behind the improvement in the merchandise trade balance during the month.
Lower gold imports can have a significant impact on India’s trade deficit because precious metals form an important component of the country’s import bill.
Electronics and Engineering Exports Drive Growth
The strong performance of exports was led by shipments of electronics, engineering products and petroleum products.
The growth reflects continued momentum in India’s manufacturing and export-oriented sectors, particularly in products that have gained importance in global supply chains.
The rise in electronics exports is also consistent with India’s expanding role in electronics manufacturing and global production networks.
Trade Deficit Falls to Five-Month Low
With exports growing much faster than imports and gold imports declining sharply, India’s merchandise trade deficit narrowed to USD 26.86 billion, its lowest level in five months.
The August trade numbers provide a positive signal for India’s external sector, although the impact of global commodity prices, crude oil imports and international demand will remain important factors for the trade outlook.
The latest figures underline the resilience of India’s export sector and the growing contribution of manufacturing-linked categories such as electronics and engineering goods.
Source: PTI | Economy India
