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Driven by electronics, engineering goods and gems and jewellery, India’s goods exports rose 6.7% from a year earlier to $35.1 billion in August despite global uncertainties. Along with a fall in imports, this aided the merchandise trade deficit to narrow to $26.5 billion.The trade deficit was $27.35 billion in the preceding month and $35.6 billion a year earlier. The department of commerce is identifying as many as 100 products to reduce import dependency and improve domestic capabilities.The country posted merchandise exports of $35.1 billion in August, according to official data released on Monday. Imports fell 10.1% from a year earlier to $61.6 billion.Exports to the US slowed to a nine-month low of 7.2% from an average around 25% in the first seven months of 2025, as Washington imposed a 25% reciprocal tariff on imports from India effective August 1 and another 25% penalty starting August 27 for buying Russian oil.Live Events”Despite global headwinds, Indian exporters have held up remarkably well, reflecting the success of the government’s export strategy,” commerce secretary Sunil Barthwal said, outlining four pillars of India’s export push: improving competitiveness, diversifying markets, reducing dependence on critical geographies and supply chains, and securing market access for key sectors.On a sequential basis, exports fell 5.7%, while imports dropped 4.6%. The US remained India’s top export destination, with merchandise exports rising to $40.4 billion in April-August FY26, compared with $34.2 billion a year earlier.In the first five months of FY26, merchandise exports rose 2.5% to $184.13 billion, while imports increased 2.1% to $306.52 billion. Export growth was driven by engineering goods, electronics, pharmaceuticals, and chemicals. Gold imports fell 57% to $5.44 billion in August.”On competitiveness, initiatives like GST are helping exporters. Diversification is also visible as we tap new markets, which has strengthened resilience. At the same time, we are working to reduce reliance on a few geographies and build secure supply chains,” Barthwal said.India has drawn up country-specific export strategies for about 50 markets that account for 90% of shipments, alongside sector-specific plans, he said.”This performance reflects the resilience and competitiveness of Indian exporters across sectors. Diversification of export markets, focus on high-growth sectors, and the government’s continued support through key policies have played an instrumental role in this positive momentum,” said Federation of Indian Export Organisations president SC Ralhan.Government policies have played out well, Barthwal said, adding that India’s exports are now diversified, with the government and exporters working on further diversification. The focus is also on reducing dependency on certain geographies to avoid supply chain disruptions.Barthwal also flagged efforts to cut India’s import dependence. “We have identified around 100 products where domestic capacity exists. By boosting utilisation, we can replace imports, strengthen industry, and reduce vulnerabilities,” he said. “Given this scenario, I am glad to say that our monthly exports, both merchandise and services, rose in August,” he added.”Engineering goods, chemicals and plastics are among the key categories under review,” the commerce secretary noted, adding that the ministry would undertake a comprehensive exercise to determine which products can be feasibly made and supplied within the country. The findings will form the basis for industry-specific roadmaps.The government will also assess certain products if they are being made in India actually or only assembled here. TRADE DEALSBarthwal said the next round of talks for a trade agreement with the EU will be held in Brussels during October 6-10, and that a deal is being pursued with heightened urgency.Both sides aim to conclude negotiations at the earliest, with officials indicating that key areas of convergence are now within reach. The negotiations are in its final stretch and all major issues pertaining to an India-EU FTA have been resolved, they said. Both sides are eyeing a comprehensive trade deal, but they didn’t rule out early harvest.EXPORTS PUSH, DIVERSIFICATIONThe inter-ministerial consultations for the Export Promotion Mission have concluded and the proposal will soon be sent to the Union Cabinet seeking its approval, officials said. The government is considering support measures worth about ₹25,000 crore for exporters under the Export Promotion Mission, announced in the budget for the period 2025-2031.Add as a Reliable and Trusted News Source Add Now!
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