India’s merchandise exports rose 6.7% year-on-year in August 2025 to $35.1 billion, up from $32.89 billion a year earlier, provisional Commerce Ministry data showed on Monday.
On a sequential basis, however, exports eased from $37.24 billion in July, while imports slipped to $61.59 billion from $64.59 billion in the previous month.
Compared with a year ago, imports contracted 10% from $68.53 billion, helping narrow the trade deficit to $26.49 billion. That marked a sharp improvement from the $35.64 billion gap in August 2024 and also lower than the $27.35 billion shortfall in July 2025.
The data also showed continued strength in non-petroleum merchandise exports, which rose 7.35% in the April-August 2025 period compared with the same period last year. Services exports remained firm as well, climbing to $97.43 billion in April-June 2025 from $88.46 billion a year earlier.
India’s trade deficit for April-August 2025 declined 20.76% on a year-on-year basis, reflecting a combination of higher exports and reduced import bills.
The United States remained a key driver of growth, with India’s exports to the country rising to $40.39 billion in April–August 2025 from $34.21 billion in the same period last year.
The Commerce Ministry, commenting on the figures, said exporters had performed well despite global headwinds and uncertainty in trade policies.
It added that recent goods and services tax (GST) reforms would further improve India’s export competitiveness, working alongside production-linked incentive (PLI) schemes.
Officials also pointed to ongoing efforts to diversify exports to reduce dependence on a handful of markets, with 50 countries currently accounting for 90 % of India’s outbound shipments. The government has identified 100 products for import substitution by strengthening domestic production capacities.
The Ministry reiterated that export promotion schemes remain central to its policy push, aimed at boosting supply chain resilience and broadening India’s export base.
It cautioned that India’s trade deficit should not be viewed solely as a negative, noting that it also reflects strong domestic consumption. Officials pointed out that while the US has traditionally been a large consumer market, it is now increasingly using that position as a strategic tool.
To boost self-reliance, the ministry said imports have been categorised into raw materials, intermediates and finished goods. A list of 100 key products across sectors such as engineering, chemicals and plastics is being prepared to promote Swadeshi and Aatmanirbharta, supporting both Make in India and export competitiveness.
The initiative, which will also encourage industries to expand or create new capacities for large import items, is expected to be rolled out by the end of this month following consultations with industry bodies.
