Research Report

India’s merchandise exports expanded by a sharp 26.1% year-on-year (YoY) to $43.8 billion in August 2026, boosted by the spike in commodity prices, and driven by a jump in both oil and non-oil exports. Merchandise imports saw a relatively lower expansion of 14.1% to $70.7 billion in August 2026, led by select items such as oil, electronic goods, machinery and fertilisers. Consequently, India’s merchandise trade deficit (MTD) narrowed to a 5-month low of $26.9 billion in August 2026 from the year-ago level of $27.2 billion, led by the gold imports-driven plunge in the non-oil segment, even as the oil deficit widened during the month. Sequentially, the MTD recorded a sharper easing from $32.0 billion in July 2026.

• MTD eased to 5-month low of $26.9 billion in August 2026: India’s merchandise exports jumped by 26.1% YoY to $43.8 billion in August 2026, led by both oil (+63%) and non-oil (+21%) exports.
  
• Exports and imports saw healthy growth in 5M FY2027, boosted by commodity price inflation: Merchandise exports rose by a sharp 17.8% YoY in 5M FY2027, with oil, engineering and electronic goods accounting for ~83% of the absolute YoY rise in shipments.