Summary:
India’s merchandise exports rose 26.1% to $43.81 billion in August 2026, led by electronics, petroleum and engineering goods. Rising machinery and electronics imports also point to investment demand, while expanding export markets indicate broader diversification and strengthening manufacturing activity.
India’s merchandise exports rose 26.1% year-on-year to $43.81 billion in August 2026, compared with $34.74 billion a year earlier. The growth was broad-based, led by electronics, petroleum products and engineering goods. Electronics exports jumped 89.82% to $5.55 billion, petroleum products increased 63.27% to $6.81 billion and engineering goods rose 24.86% to $12.32 billion. Exports of marine products rose 27.76%, chemicals 16.38% and meat, dairy and poultry products 37.08%.
The underlying trend remained strong even after excluding petroleum products and gems and jewellery. Such exports increased to $34.68 billion in August from $28.26 billion a year earlier. During April-August FY27, merchandise exports reached $215.91 billion, up 17.85%, while total exports of goods and services stood at an estimated $399.27 billion, up 15.55%.
Electronics and Engineering Drive Structural Shift
Engineering exports reached $58.70 billion during April-August, rising 19.55%, while electronics exports climbed nearly 40% to $26.66 billion. Petroleum product exports also increased 39.43% during the first five months.
The sharp rise in electronics exports points towards a gradual shift towards higher-value manufactured products. Growth in chemicals, plastics, marine products, handicrafts and processed food also indicates that export expansion is spreading across multiple product categories.
However, the performance is not uniform. During April-August, tea exports declined 15.62%, tobacco 17.49%, fruits and vegetables 10.29%, ceramic products and glassware 21.56%, and ready-made garments of textiles 9.10%.
Export Markets Are Becoming More Diverse
The US remained India’s largest export market, with exports rising 21.83% in August to $8.32 billion and reaching $42.79 billion during April-August. At the same time, several smaller markets recorded much faster growth.
August exports to Singapore rose 160.96%, Spain 196.47%, Tanzania 214.52%, Malaysia 84.43%, Japan 80.66%, China 52.35% and South Africa 45.62%. During April-August, exports to Tanzania increased 129%, Singapore 96.56%, Sri Lanka 93.13%, Malaysia 75.4%, South Africa 58.23%, Spain 54.85% and Japan 42.55%.
Rising Imports Reflect Investment Demand
Merchandise imports increased 14.07% to $70.67 billion in August and rose 18.21% during April-August to $363 billion. The merchandise trade deficit stood at $26.86 billion in August, compared with $27.22 billion a year earlier.
Import composition provides a more detailed picture. During April-August, electrical and non-electrical machinery imports rose 15.77% to $28.46 billion, professional and optical instruments increased 17.18%, transport equipment 7.12%, machine tools 5.07% and electronics 43.57% to $66.48 billion.
At the same time, gold imports fell 57.75% in August, while iron and steel declined 11.69%, pulp and waste paper 13.83%, newsprint 10.85%, textile yarn and fabrics 8.12%, medicinal and pharmaceutical products 7.90% and wood products 3.17%.
