India’s merchandise exports surge by a phenomenal 26.12% to US$ 43.81 Billion in August; FIEO sees broadening of export markets

New Delhi, September 15, 2026: India’s merchandise exports registered a phenomenally strong 26.12% year-on-year growth in August 2026, rising to US$ 43.81 billion, compared with US$ 34.74 billion in August 2025. Overall exports of merchandise and services are estimated at US$ 82.68 billion, registering a robust 25.41% growth over August 2025. India’s merchandise imports stood at US$ 70.67 billion during August 2026, while the merchandise trade deficit narrowed marginally to US$ 26.86 billion, compared with US$ 27.22 billion in August 2025. Overall imports of merchandise and services were estimated at US$ 92.09 billion, resulting in an overall trade deficit of US$ 9.41 billion.

Commenting on the trade data, S C Ralhan, President, FIEO, said “the 26.12 per cent growth in merchandise exports in August is a very encouraging performance and yet again reflects the resilience, competitiveness and adaptability of Indian exporters. Equally significant is the broadening of India’s export markets, which indicates that our exporters are increasingly leveraging new and emerging opportunities while strengthening their presence in traditional markets.”

Ralhan noted that the April–August 2026-27 period has also maintained strong momentum. Merchandise exports increased by 17.85% to US$ 215.91 billion, while overall exports of merchandise and services rose 15.55% to US$ 399.27 billion. Services exports are estimated to have grown 12.95% during the period. He further said that encouraging export growth across markets such as China, Singapore, Germany, South Africa, Malaysia, Tanzania, Hong Kong, Australia, Spain and Sri Lanka points towards greater diversification of India’s export basket. Exports to BRICS countries grew 13.3% during April–August 2026, while exports to China increased 38.71%. Shipments to the US grew 6.17%, while exports to the European Union increased 3.84%.

“The diversification of markets is particularly important in the present global environment. Stronger engagement with BRICS, emerging economies and other high-potential markets will help Indian exporters build greater resilience and reduce concentration risks,” Ralhan added.

The export performance in August was supported by a broad-based improvement across several key sectors, with engineering goods, petroleum products, electronic goods and chemicals emerging among the important contributors to merchandise export growth. Automobile exports also recorded a strong 22.2% year-on-year increase, led by two- and three-wheelers, while gems and jewellery exports remained positive, rising 3.14% to US$ 2.30 billion. The continued expansion of electronics and engineering exports, along with the resilience of chemicals, pharmaceuticals and other manufacturing-intensive sectors, indicates a strengthening of India's diversified export basket. 

Ralhan added that the sectoral performance is particularly encouraging as growth is not confined to a single export segment. Engineering, electronics, chemicals, petroleum products, automobiles and other value-added sectors are contributing to the expansion of India’s export basket. At the same time, the composition of imports underlines the need to further strengthen domestic manufacturing and value chains, particularly in critical industrial and technology-intensive inputs.”

Further on the import side, petroleum and energy products, electronic goods and other industrial inputs continued to account for significant import demand, reflecting domestic production and consumption requirements, while gold imports declined sharply to around US$ 2.3 billion, helping moderate the merchandise trade deficit. 

Ralhan emphasised that sustaining the export momentum would require continued focus on competitive trade finance, logistics and infrastructure, market diversification, ease of doing business and targeted support for MSMEs and emerging exporters. “With merchandise exports already growing 17.85 per cent in the first five months, exporters have demonstrated a strong foundation for further expansion. A coordinated effort to address cost competitiveness, logistics, finance and market-access challenges can help India convert this momentum into sustained export growth during the remainder of FY 2026-27,” he said.