India’s external trade performance showed resilience in August 2025, with exports registering strong growth even as imports slipped, leading to a significantly lower trade deficit.
According to government data, India’s total exports (merchandise and services combined) stood at US$ 69.16 billion in August 2025, marking a 9.34% increase over US$ 63.27 billion in August 2024. In contrast, imports fell by 7% to US$ 79.04 billion, compared to US$ 85.01 billion in the same month last year.
Merchandise and Services Performance
Merchandise exports rose to US$ 35.10 billion in August 2025, up 6.71% from US$ 32.89 billion a year earlier. Meanwhile, merchandise imports dropped sharply by around 10%, coming in at US$ 61.59 billion against US$ 68.53 billion in August 2024.
On the services side, India continued to see strong growth. Services exports were estimated at US$ 34.06 billion, an increase of nearly 12% from US$ 30.36 billion in August last year. Services imports stood at US$ 17.45 billion, up about 6% from US$ 16.46 billion in August 2024.
Cumulative Trade Performance (April–August 2025)
For the April–August 2025 period, India’s total exports were estimated at US$ 349.35 billion, a growth of 6.18% over the same period last year. Imports during the same five-month period were valued at US$ 390.78 billion, reflecting a modest 2.49% rise year-on-year.
Trade Deficit Narrows
The combined impact of higher exports and declining imports in August helped narrow India’s trade deficit significantly. The deficit stood at US$ 9.88 billion in August 2025, compared to nearly US$ 22 billion in August 2024.
Economists suggest that the narrowing deficit provides some cushion to India’s external sector and could ease pressure on the rupee, even as global demand remains uncertain.
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