Key Details
India’s trade expanded rapidly during April–August 2026–27, although the 18.01% increase in imports exceeded the 15.55% rise in exports.
Indicator | April–August 2026–27 | Previous year | Change |
|---|---|---|---|
Total exports | US$399.27 bn | US$345.55 bn | +15.55% |
Merchandise exports | US$215.91 bn | US$183.21 bn | +17.85% |
Services exports* | US$183.36 bn | US$162.34 bn | +12.95% |
Total imports | US$459.65 bn | US$389.49 bn | +18.01% |
Merchandise imports | US$363.00 bn | US$307.09 bn | +18.20% |
Services imports* | US$96.65 bn | US$82.40 bn | +17.29% |
Overall trade balance | −US$60.38 bn | −US$43.94 bn | Deficit widened |
*The August services figures are estimates based on the latest RBI data available for July 2026.
Three figures clarify the composition:
Non-petroleum exports: US$180.61 billion, up 14.39%
Merchandise trade deficit: US$147.09 billion
Services trade surplus: US$86.71 billion
August Exports Accelerate and the Monthly Deficit Narrows
Merchandise exports rose 26.12% year-on-year to US$43.81 billion in August, while imports increased 14.06% to US$70.67 billion. The monthly merchandise deficit consequently narrowed slightly to US$26.86 billion, from approximately US$27.22 billion a year earlier.
Including estimated services trade, August exports reached US$82.68 billion and imports US$92.09 billion. The overall monthly deficit narrowed to US$9.41 billion, compared with US$11.62 billion in August 2025.
The stronger August performance therefore differs from the cumulative picture: the latest month showed faster export than import growth, while imports remained ahead over the full April–August period.
Electronics, Petroleum and Engineering Drive the Goods Expansion
Three major categories accounted for much of the August momentum:
Export category | August 2026 value | Annual growth |
|---|---|---|
Engineering goods | US$12.32 bn | 24.86% |
Petroleum products | US$6.81 bn | 63.27% |
Electronic goods | US$5.55 bn | 89.82% |
Chemicals and cotton-based products also recorded double-digit growth. Smaller categories—including iron ore, marine products, handicrafts and meat, dairy and poultry products—expanded sharply from lower bases.
The 14.39% cumulative rise in non-petroleum exports shows that the improvement extends beyond higher petroleum shipments. Non-petroleum and non-gems-and-jewellery exports increased from US$146.52 billion to US$168.69 billion.
Services Offset Most, but Not All, of the Goods Deficit
Services exports are estimated to have reached US$183.36 billion during April–August, producing a surplus of US$86.71 billion. That surplus offset approximately 59% of the US$147.09 billion merchandise deficit.
Services therefore remain central to India’s external balance. Their cushioning effect was nevertheless insufficient to prevent the combined deficit from widening by US$16.44 billion over the corresponding period.
The services figures require more cautious treatment than the merchandise data because August estimates have been extrapolated from the latest RBI release rather than observed directly for the month.
Export Demand Is Spreading across Markets
Singapore, China, the United States, Tanzania and Malaysia recorded some of the largest increases in export value during April–August. This suggests that the expansion was not confined to a single destination.
Market diversification can reduce exposure to a slowdown or policy change in one trading partner. Its durability will depend on whether the increases reflect recurring orders and broader product access rather than isolated high-value shipments.
Policy Relevance
The figures present a stronger export performance alongside a weaker cumulative trade balance. That distinction matters: export growth can support production and employment even as faster import growth increases the economy’s foreign-exchange requirement.
The composition also needs closer attention. Rapid electronics exports are encouraging, but their domestic economic contribution depends on local value addition and reliance on imported components. Petroleum exports similarly support trade receipts while remaining connected to India’s imported crude requirement. The continued rise in non-petroleum exports is therefore an important measure of underlying strength.
Services are financing a large part of the merchandise deficit. Sustaining that cushion requires competitiveness in IT, professional, financial and business services, while stronger domestic manufacturing could reduce dependence on imports in sectors where economically viable local capacity can be developed.
Future releases should clarify whether the current momentum is being sustained through higher export volumes, new firms and products, greater domestic value addition and repeat demand across markets.
Follow the Full Data Release Here: India’s cumulative exports reach US$399.27 billion during April–August 2026–27