India exports surge 26% in August, narrowing trade deficit

India's merchandise exports surged 26% in August to $43.81 billion, outpacing import growth and narrowing the monthly trade deficit, according to official data released on Tuesday. The growth was broad-based, led by electronics, petroleum, and engineering goods, marking a strong start to the second quarter of the fiscal year. Merchandise imports grew 14.1% to $70.67 billion in August, causing the monthly trade deficit to narrow to $26.86 billion from $27.20 billion a year earlier. Commerce Secretary Rajesh Agrawal noted that this was the first time in value terms that export growth had surpassed import growth. "The exceptional growth in exports is being driven by a dynamic mix of commodities and key partner countries," Agrawal said during a media briefing. Total exports, including merchandise and services, rose 25.41% to $82.68 billion in August, while total imports increased 18.75% to $92.09 billion. The overall trade deficit for the month fell to $9.4 billion from $11.6 billion in August 2025. Key sectors driving the merchandise export surge included electronic goods, which jumped 89.82% to $5.55 billion, petroleum products, which rose 63.27% to $6.