India’s August Goods Exports Rise 26% to $43.81 Billion Amid US Demand and Rupee Fall

India’s goods exports increased 26.12% year-on-year to $43.81 billion in August 2026, up from $34.74 billion a year earlier, according to data released by the Ministry of Commerce. The increase was driven in part by a sharp rise in shipments to the US and the depreciation of the rupee.

Exports to the US rose more than 21% to $8.3 billion in August from $6.8 billion a year earlier, marking the strongest monthly increase in shipments to Washington so far this calendar year. The lower tariff burden compared with August 2025 also supported the year-on-year comparison.

The rupee’s depreciation of more than 10% also improved export competitiveness, with economists noting that the effect could be more visible in higher-margin products. An HSBC analysis cited in the report found machinery, electronics and transport among the high-tech export categories showing a stronger response to currency depreciation

Goods imports rose 14.05% to $70.67 billion in August from $61.96 billion a year earlier. Gold imports fell sharply to $2.30 billion from $5.44 billion, helping moderate overall import growth.

As a result, the merchandise trade deficit narrowed slightly to $26.86 billion in August from $27.20 billion in August 2025, Commerce Secretary Rajesh Agarwal said.

Export performance remained mixed across sectors. During the April-June quarter, engineering goods, electronics and pharmaceuticals grew 18.1%, 22.6% and 6.8%, respectively, while textile exports declined 12.4% and leather products fell 4.7%. Of 31 export sectors, 11 recorded year-on-year declines during the quarter.