NEW DELHI – India’s merchandise trade deficit narrowed to $26.49 billion in August from $27.35 billion in July, according to data released by the Commerce Ministry on Monday, as both exports and imports weakened amid global trade uncertainty and escalating U.S. tariffs.
Exports fell to $35.1 billion in August from $37.24 billion the previous month, while imports declined to $61.59 billion from $64.59 billion. “Despite global uncertainties and trade policy uncertainties, Indian exporters have done well. It shows that the government’s policy has paid off,” Commerce Secretary Sunil Barthwal said.
Commerce and Industry Minister Piyush Goyal told exporters the government is committed to building an environment that supports them through shifting tariff regimes. Earlier this month, he met with export promotion councils and industry groups to chart a path forward.
In a relief measure, the government extended the export obligation period under the Advance Authorization scheme for products covered by mandatory Quality Control Orders from six months to 18 months. The Directorate General of Foreign Trade issued the order at the request of the Department of Chemicals and Petrochemicals, following similar extensions in textiles and other sectors. The move is expected to give exporters more flexibility in managing compliance while maintaining global competitiveness.
The adjustment comes as the Trump administration raised tariffs on U.S. imports across the board, with India facing one of the highest penalty rates at 50 percent, linked to its ongoing purchases of Russian oil. Officials said the extension will especially benefit India’s chemical and petrochemical industries, which account for a significant share of exports. In fiscal 2024–25, the sector contributed $46.4 billion, or 10.6 percent of India’s total exports. (Source: IANS)
