India's trade deficit narrows to $26.86B in August

• India's merchandise trade deficit fell to $26.86 billion in August
• Exports rose 26.12% to $43.18 billion, outpacing 14.1% import growth
• Engineering, petroleum and chemicals led demand from US and EU markets

India’s merchandise trade deficit narrowed to $26.86 billion in August 2026, down from $27.20 billion in the same month last year and nearly $32 billion in July, as exports grew faster than imports for

the first time, Commerce Secretary Rajesh Agrawal said on September 15.

Merchandise exports jumped 26.12% year-on-year to $43.18 billion in August, while imports increased 14.1% to $72.67 billion.

The rise in exports was led by engineering goods, petroleum products, chemicals and textiles. Demand from key markets, including the US, European Union and BRICS economies, supported the growth, Agrawal said.