India’s goods exports rose 26% year-on-year to $43.8 billion in August, the fastest expansion in more than four years, as electronics, engineering products and petroleum shipments drove growth, according to the latest commerce department data released on Tuesday.
Imports increased 14% to $70.7 billion from $62 billion a year earlier, but a sharp fall in gold shipments helped narrow the merchandise trade deficit to $26.9 billion, its lowest level in five months. The figures point to continued momentum in manufacturing-linked trade even as India’s import bill remains shaped by energy requirements and industrial inputs.
Commerce secretary Rajesh Agrawal said exports had not only continued to grow but had improved during August. He attributed import growth during the first five months of the financial year to strong domestic economic expansion, rising energy requirements and the inputs needed to sustain manufacturing activity.
Electronics exports increased almost 90% to $5.6 billion during the month. Engineering goods exports rose 25% to $12.3 billion, while petroleum exports climbed 63% to $6.8 billion. The increase in these categories made them the principal drivers of the overall improvement in goods shipments.
Agrawal said export growth reflected higher volumes in around 40% of major product categories. Several categories recorded increases in both value and volume, he said, while cautioning that the faster expansion in rupee terms could not be attributed only to the depreciation of the Indian currency.
The import data showed a different pattern across major commodities. Gold imports fell 58% to $2.3 billion, reaching $2.3 billion, while silver imports more than doubled to $1 billion. Electronics imports rose more than 40% to $13.7 billion. Along with petroleum and silver, electronics accounted for the entire $8.5-billion increase in the import bill during August.
Services exports were also estimated to have performed strongly, rising 24.7% to nearly $39 billion. Services imports increased 37% to $21.4 billion. Agrawal said combined exports of goods and services during the first five months of the financial year were close to $400 billion.
The latest numbers underline the expanding role of electronics and engineering in India’s external trade. These sectors depend on manufacturing clusters, energy supply, transport links and supporting industrial networks, making export performance relevant to the wider urban economy and to locations where production, warehousing and logistics are concentrated.
Commerce and industry minister Piyush Goyal described the figures as robust and said they reflected the growing strength and competitiveness of India’s manufacturing ecosystem. He said exporters were expanding the country’s presence across global markets.
The commerce department’s next monthly trade release will show whether the August acceleration is sustained across goods and services and how the changing mix of energy, electronics, precious metals and industrial products affects the trade balance.
