India’s exports hit $35.1 billion in August as imports drop by 10%

Noor Mohmmed

    17/Sep/2025

  • India’s merchandise exports rose 6.7% in August 2025, reaching $35.1 billion, driven by growth in key sectors.

  • Imports declined by 10.12% to $61.59 billion, reflecting weaker domestic demand and global commodity price moderation.

  • The fall in imports and rise in exports helped reduce India’s trade deficit, supporting the overall balance of payments.

India’s Exports Rise 6.7% in August as Imports Decline 10%

India’s merchandise trade data for August 2025 indicates a positive trend for exports and a decline in imports. Exports rose by 6.7% to $35.1 billion compared to the same month last year, reflecting strong demand for Indian goods across major international markets.

Exports Performance

The rise in exports was supported by key sectors such as engineering goods, petroleum products, chemicals, and pharmaceuticals. Analysts note that a combination of competitive pricing, diversified markets, and stable supply chains contributed to this growth. The increase in exports also signals recovery in global demand for Indian products, despite ongoing global economic uncertainties.

Imports Trend

India’s imports declined sharply by 10.12% to $61.59 billion in August. The fall in imports was largely due to lower crude oil prices, reduced gold imports, and slower domestic demand for electronic goods and machinery. The decline in import bills has eased pressure on the trade deficit and contributed to stabilising the current account.

Trade Deficit Improvement

The narrowing gap between exports and imports has helped reduce India’s trade deficit in August 2025. The combined effect of rising exports and falling imports supports the overall balance of payments and strengthens the rupee against major currencies.

Government Measures

The government continues to promote exports through schemes like the Merchandise Exports from India Scheme (MEIS) and Production Linked Incentive (PLI) schemes for various sectors. Policy measures aimed at boosting domestic manufacturing and reducing import dependency also contribute to trade balance improvement.

Outlook

Economists expect India’s exports to continue growing in the coming months, supported by global recovery and domestic manufacturing initiatives. Imports may remain subdued due to moderated commodity prices and prudent import management, maintaining a healthier trade deficit.

Conclusion

In August 2025, India’s exports grew 6.7% to $35.1 billion, while imports fell by 10.12% to $61.59 billion. The combined effect reduced the trade deficit, reflecting resilience in exports and controlled import growth, strengthening India’s economic position globally.


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