India’s Exports Surge 25% In August Driven By Petroleum Shipments Amid West Asia Tensions

Last Updated:September 15, 2026, 10:13 pm IST

India’s merchandise exports grew from $34.74 billion in August 2025 to $43.81 billion in August 2026, while its imports rose by 14.1% year-on-year to $70.76 billion in 2026.

India’s cumulative exports (merchandise and services) during April-August 2026-27 are estimated at $399.27 billion.

India’s exports surged to $82.68 billion in August 2026, registering a 25.41% growth from August 2025, driven by a jump in petroleum product shipments. A dip in gold imports has also helped India narrow the trade deficit to a five-month low of $26.86 billion.

According to a press release by the Ministry of Commerce, India’s merchandise exports grew from $34.74 billion in August 2025 to $43.81 billion in August 2026, while its imports rose by 14.1% year-on-year to $70.76 billion in 2026.

The growth in exports in August was the highest since June 2022, when shipments had risen 30.12%. The cumulative exports (merchandise and services) during April-August 2026-27 are estimated at $399.27 billion, marking a growth of 15.5% from last year.

Non-petroleum, non-gems and jewellery exports in August 2026 were $34.68 billion compared to $28.26 billion in August 2025. The estimated value of services exports for August 2026 is $38.87 billion, compared to $31.19 billion in August 2025.

The merchandise trade deficit during the first five months of this fiscal year widened to $147.09 billion as compared to $123.88 billion during April-August 2025-26. In August 2025, the deficit was $27.22 billion. In July, it was $31.98 billion. The last low was $20.67 billion in March.

India’s gold imports dipped to $2.3 billion in August from $5.4 billion in August 2025, registering a decline of 57.7%. Pulp And Waste Paper, Iron and steel, pharmaceuticals and wood products also registered negative growth this year.

India’s Exports To US, China Rise

India’s exports to the US increased by 21.83% to $8.4 billion and to China by 52.35% to $1.9 billion in August compared to the year-ago period, according to the Commerce Ministry. The inbound shipments rose 17% to $12.77 billion from China and by 65.78% to $5.97 billion from the US, according to the ministry’s data.

However, exports to the UAE, the Netherlands, and Saudi Arabia registered a decline in August. Exports to the UAE dipped 26.1% to $2.4 billion on account of the West Asia crisis.

Briefing the media on the data, Commerce Secretary Rajesh Agarwal said the good momentum of export growth is continuing and is rather building up also. He said higher imports during the first five months of 2026-27 are being propelled by strong domestic economic expansion, rising energy requirements and the critical inputs needed to sustain the rapid growth of manufacturing sector.

On the exports front, he said a mix of commodities helped push the growth and that included engineering goods, petroleum products, chemicals and textiles. “At the same time, major demand has come from the US, EU, BRICS nations and emerging economies. So this also underscores India’s expanding global footprint and improves our resilience, diversification and strategic trade integration objectives,” he was quoted as saying by news agency PTI.

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What was the value of India’s exports in August 2026 and what drove this growth?

India’s exports surged to $82.68 billion in August 2026, representing a 25.41% year-on-year growth from August 2025. This significant increase was primarily driven by a jump in petroleum product shipments amid West Asia tensions.

How did India’s trade deficit change in August 2026 and what caused the shift?

India’s trade deficit narrowed to a five-month low of $26.86 billion in August 2026. This narrowing was primarily helped by a sharp dip in gold imports, which fell 57.7% to $2.3 billion from $5.4 billion in August 2025.

How did India’s trade with the US and China change in August 2026?

In August 2026, India’s exports to the US increased by 21.83% to $8.4 billion, while exports to China rose by 52.35% to $1.9 billion. Meanwhile, inbound shipments to India grew by 65.78% from the US to $5.97 billion and by 17% from China to $12.77 billion.

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