Big Boost for India’s Exports

India’s export momentum continued in August, with merchandise exports rising 26.12% year on year to $43.81 billion, equivalent to around ₹4.20 lakh crore. This marks the highest growth recorded since June 2022. The increase was supported by higher exports of petroleum products.

Imports during the month rose by around 14.1% to $70.76 billion, or approximately ₹6.78 lakh crore. As a result, the trade deficit narrowed to a five-month low of $26.86 billion. The government said the decline in gold imports was one of the key factors behind the reduction in the trade deficit.

During the April–August period, exports grew 17.85% to $215.91 billion, while imports increased 18.21% to $363 billion. The trade deficit consequently widened to $147.09 billion. Gold imports in August fell to $2.30 billion, down 57.7% from $5.40 billion in the same month last year. The sharp rise in gold prices has also led to views that high prices may be reducing domestic demand for the precious metal.