India’s trade deficit contracted by more than 54 per cent in August 2025 after exports surged and merchandise imports reduced significantly, as per government data.
The monthly trade data released by the Ministry of Commerce and Industry showed that the trade deficit had reduced by $9.9 billion in the month of August. For the period of August 2024, it had stood at $21.7 billion, while the overall trade deficit in April-August period of this financial year stood at $41.4 billion, down by 20.1 per cent since the April-August 2024 period.
The data also showed exports to the US had slightly increased to about $6.86 billion in August 2025, as compared to $6.7 billion in August last year, despite a high tariff imposition of 25 per cent on Indian exports to the US for most of that month, and 50 per cent tariffs imposed for a few days at the end of the month.
Commerce Secretary Sunil Barthwal said at a press conference that “the policies of the Government of India have paid off well”, evident in India’s exporters doing “extremely well” despite “global uncertainties and trade policy uncertainties”.
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Meanwhile, India’s total exports increased to $69.2 billion in August 2025, an increase of 9.3 per cent since August last year. This includes merchandise exports, which increased to $35.1 billion this August, compared to $32.9 billion in August last year, showing a growth of 6.7 per cent.
Services exports have also increased to $34.1 billion in August 2025, compared to $30.4 billion in August 2024.
India’s total imports, however, fell to $79 billion in August 2025, as compared to $85 billion in August last year, a contraction of 7 per cent. This was driven by a 10.1 per cent contraction in merchandise imports to $61.6 billion.
Services imports, on the other hand, increased marginally to $17.45 billion in August 2025 from $16.5 billion in August last year.
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