Through the first 5 months of FY 2025–26, however non-uniform world demand, India’s exterior commerce sector continued to indicate resilience. Provisional information revealed by the Ministry of Commerce & Business state that the cumulative exports each for merchandise and providers aggregated to US$ 349.35 billion throughout April to August 2025, registering a 6.18% year-on-year development when in comparison with US$ 329.03 billion throughout the identical interval in 2024.
The Ministry, nevertheless, went on to say that development was led by electronics, engineering items, gems & jewelry, petroleum merchandise, and prescription drugs, the place providers continued to be one other key anchor. Extra importantly, India’s general commerce deficit has narrowed, pointing to a greater exterior stability.
Merchandise exports reached US$ 184.13 billion, a modest 2.52% rise from US$ 179.60 billion final yr. Inside this, non-petroleum exports confirmed stronger momentum, climbing to US$ 158.07 billion from US$ 147.25 billion, a 7.35% improve that displays resilience in India’s core manufacturing and agricultural sectors.
Throughout the identical time interval, imports had been US$ 390.78 billion, up simply 2.49% from US$ 381.30 billion the earlier yr. The nation’s buying and selling situation improved as seen by the commerce deficit for April–August 2025, which decreased from US$52.27 billion in 2024 to US$41.42 billion.
August 2025:
August proved to be a really profitable month for exports, with whole shipments totaling US$69.16 billion, up 9.34% from the earlier yr. In distinction, imports dropped 7% to US$79.04 billion, which considerably decreased the month-to-month deficit.
- Merchandise exports: US$ 35.10 billion (vs. US$ 32.89 billion in Aug 2024)
- Merchandise imports: US$ 61.59 billion (vs. US$ 68.53 billion)
- Providers exports: US$ 34.06 billion (vs. US$ 30.36 billion)
- Providers imports: US$ 17.45 billion (vs. US$ 16.46 billion)
- Commerce deficit: US$ 9.88 billion, considerably decrease than US$ 21.73 billion in August 2024
Sector-Sensible Export Drivers (August 2025):
- Electronics: +25.93%, reaching US$ 2.93 billion (vs. US$ 2.32 billion in 2024)
- Engineering items: +4.91%, totaling US$ 9.90 billion (vs. US$ 9.44 billion)
- Gems & jewelry: +15.57%, valued at US$ 2.31 billion (vs. US$ 2.00 billion)
- Petroleum merchandise: +6.54%, at US$ 4.48 billion (vs. US$ 4.20 billion)
- Prescribed drugs: +6.94%, climbing to US$ 2.51 billion (vs. US$ 2.35 billion)
India’s export base is various, as evidenced by the double-digit rise in cereals, coal & minerals, tea, dairy, poultry, ceramic objects, and rice, along with these predominant classes.
The providers sector remained a vibrant spot in India’s exterior commerce. Between April and August 2025:
- Providers exports had been estimated at US$ 165.22 billion, rising from US$ 149.43 billion final yr.
- Providers imports stood at US$ 84.25 billion.
- This led to a rise within the surplus from US$ 68.25 billion to US$ 80.97 billion.
This surplus illustrates the worldwide competitiveness of Indian IT providers, digital options, consulting, and monetary providers and continues to function a vital buffer towards India’s merchandise commerce deficit.
Exports in August expanded strongly throughout each conventional and new locations:
- UAE: +23.42%
- USA: +7.15%
- Netherlands: +17.87%
- Hong Kong: +62.46%
- China: +22.38%
The sharp rise in shipments to Hong Kong from gems & jewelry and electronics and higher development to China above all signify an rising commerce linkage of India with Asia, whereas UAE and USA have stood as dependable supporting engines for export demand.
Key Sources of Imports
On the import entrance, India noticed bigger inflows from Russia, Saudi Arabia, Eire, Iraq, and Qatar. Whereas vitality imports appeared to stay the most important from Russian and Center Japanese suppliers, Eire turned an necessary supply for specialised and high-value imports.
Conclusion:
The Ministry of Commerce & Business emphasised that the narrowing of the commerce deficit alongside the robust development within the merchandise and providers sector testifies to India’s capability to evolve with the shifting world commerce dynamics. Electronics, prescription drugs, and engineering merchandise are anticipated to proceed to be the primary pillars, whereas agricultural exports add additional help.
