India’s Trade Deficit Declines by 54% in August

• India’s trade deficit contracted by 54% to $9.9 billion in August, driven by a surge in merchandise exports, strong performance in services exports, and a significant reduction in merchandise imports.

• The trade deficit was $21.7 billion in August last year.

• Exports to the U.S. increased to about $6.86 billion in August 2025, from $6.7 billion in August last year.

• Despite tariffs, India’s total exports increased to $69.2 billion, a 9.3% increase from the previous year.

• Merchandise exports increased to $35.1 billion, a 6.7% growth, while services exports increased to $34.1 billion.

• Imports fell to $79 billion, a 7% contraction, driven by a 10.1% contraction in merchandise imports to $61.6 billion.

• Services imports increased marginally to $17.45 billion from $16.5 billion in August 2025.

• The trade deficit in April-August of this financial year stood at $41.4 billion, down 20.1% over the April-August 2024 period.

Trade Deficit Reduction India is important topic for Civil service exam (WBCS).

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