India witnessed a significant positive shift in its trade balance during August 2025, with the trade deficit shrinking by an impressive 54% to just $9.9 billion. This substantial improvement was primarily fueled by a powerful increase in merchandise exports, robust growth in services exports, and a notable decrease in merchandise imports. For context, the trade deficit was considerably higher at $21.7 billion in August of the previous year (2024).
India’s Total Exports See Robust Growth
Delving into the specifics, the monthly trade figures from the Ministry of Commerce and Industry revealed a positive trend in exports to the United States. These exports climbed to approximately $6.86 billion in August 2025, up from $6.7 billion in August 2024. This growth is particularly noteworthy considering that Indian exports to the U.S. faced 25% tariffs for the majority of the month, with an even steeper 50% tariff applied during the final days.
Government Policies Yield Positive Results
Commerce Secretary Sunil Barthwal, while announcing the data, lauded the performance, stating, “Despite the prevailing global uncertainties and unpredictable trade policies, India’s exporters have demonstrated exceptional resilience.” He further emphasized, “This clearly indicates that the strategic policies implemented by the Government of India have proven highly effective.”
Overall, India’s total exports collectively surged to $69.2 billion in August 2025, representing a solid 9.3% increase compared to the same month last year. Breaking this down, merchandise exports alone grew by 6.7%, reaching $35.1 billion in August 2025, up from $32.9 billion in August 2024.
Adding to this positive trend, services exports also saw significant growth, rising to $34.1 billion in August 2025 from $30.4 billion recorded in August of the previous year.
Conversely, India’s total imports experienced a welcome decline, dropping to $79 billion in August 2025 from $85 billion in August 2024—a 7% contraction. This reduction was primarily due to a substantial 10.1% decrease in merchandise imports, which stood at $61.6 billion.
However, services imports showed a slight upward trend, increasing marginally to $17.45 billion in August 2025 from $16.5 billion in the corresponding month of the previous year.
Thanks to August’s robust export performance, the cumulative trade deficit for the April-August period of the current financial year reached $41.4 billion, a notable 20.1% reduction compared to the same period in 2024.