India’s merchandise exports recorded a strong rise in August 2026, increasing 26.12% year-on-year to $43.81 billion, compared with $34.74 billion in August 2025. The latest government trade data shows that the growth was supported by strong performance across electronics, petroleum products, engineering goods, chemicals and other export sectors. India Exports Rise 26.12

India Exports Rise 26.12% to $43.81 Billion in August: China Shipments Jump 52.35%

The strong export performance came alongside a more moderate increase in merchandise imports. Imports rose around 14.1% to $70.67 billion, helping India’s merchandise trade deficit narrow to $26.86 billion in August.

India Exports August 2026: Key Numbers

The August trade data highlights a broad improvement in merchandise exports.

• Merchandise exports: $43.81 billion
• Year-on-year export growth: 26.12%
• Merchandise imports: $70.67 billion
• Merchandise trade deficit: $26.86 billion
• April-August merchandise exports: $215.91 billion
• April-August merchandise export growth: 17.85%

The Commerce Ministry said the value of merchandise exports during April-August 2026-27 reached $215.91 billion, compared with $183.21 billion during the corresponding period a year earlier.

Exports to China Jump 52.35%

One of the most notable developments in the August trade data was the increase in Indian exports to China.

India’s exports to China rose 52.35% year-on-year in August 2026, placing China among the top destinations showing the strongest increase in export value during the month.

This increase is significant because India-China trade has traditionally been marked by a large imbalance in favour of Chinese exports.

The latest export data indicates that Indian businesses have been able to increase shipments to the Chinese market across several product categories.

During April-August 2026-27, exports to China were also up 38.71% compared with the corresponding period last year.

Electronics Become a Major Export Growth Driver

Electronics were among the strongest-performing export categories in August.

Electronics exports increased by 89.82%, rising from $2.93 billion in August 2025 to $5.55 billion in August 2026.

The growth reflects the increasing role of electronics manufacturing in India’s export basket.

The sector has become particularly important as companies expand manufacturing capacity and integrate India into global supply chains.

For MSMEs involved in components, contract manufacturing, packaging, testing and related services, the expansion of electronics manufacturing can create opportunities beyond direct exports.

Petroleum Product Exports Rise 63.27%

Petroleum products were another major contributor.

Exports of petroleum products increased 63.27%, from $4.17 billion in August 2025 to $6.81 billion in August 2026.

The rise helped support the overall growth in merchandise exports.

However, petroleum exports can also be influenced by global crude prices, refining margins and international demand, meaning monthly performance can fluctuate.

Engineering Goods Exports Grow 24.86%

Engineering goods continued to provide important support to India’s export performance.

Engineering goods exports increased 24.86%, from $9.87 billion in August 2025 to $12.32 billion in August 2026.

Engineering products are particularly important for MSMEs because thousands of smaller manufacturers operate as suppliers to larger domestic and international companies.

Higher exports can therefore create opportunities across manufacturing supply chains, including machinery, components, industrial equipment and fabricated products.

Chemical Exports Also Increase

Organic and inorganic chemical exports increased 16.38% year-on-year, reaching $2.80 billion in August 2026 compared with $2.41 billion a year earlier.

Chemicals remain an important part of India’s manufacturing and export ecosystem, with opportunities for both large companies and specialized MSMEs.

Trade Deficit Narrows to $26.86 Billion

Despite imports remaining significantly higher than exports in absolute value, the merchandise trade deficit narrowed to $26.86 billion in August.

Merchandise imports rose 14.12%, significantly slower than the 26.12% growth in merchandise exports.

Lower gold imports also helped contain the overall import bill. Government data shows gold imports fell 57.75% in August.

This combination of faster export growth and slower import growth helped improve the monthly trade balance.

India’s Total Exports Also Show Strong Growth

Merchandise exports are only one component of India’s overall external trade.

When merchandise and services are combined, India’s total exports in August 2026 were estimated at $82.68 billion, representing growth of 25.41% compared with August 2025.

Total imports were estimated at $92.09 billion, producing an overall trade deficit of $9.41 billion.

The government notes that August services data is estimated because the latest RBI services data available at the time was for July 2026.

What Does the Export Growth Mean for MSMEs?

India’s MSME sector has a major role in the country’s manufacturing and export ecosystem.

Strong demand for engineering goods, electronics, chemicals, textiles and processed products can create opportunities for smaller businesses operating as manufacturers, suppliers and service providers.

For export-oriented MSMEs, stronger international demand can potentially translate into:

• New overseas customers
• Larger orders
• Supply-chain opportunities
• Manufacturing expansion
• Technology adoption
• New employment
• Greater participation in global value chains

However, higher exports do not automatically mean higher profits. Businesses still need to manage logistics, currency fluctuations, quality standards, working capital and international compliance.

India’s Export Growth Across Major Sectors

The government data shows that several categories recorded positive growth in August.

These included:

• Electronic goods: 89.82%
• Petroleum products: 63.27%
• Engineering goods: 24.86%
• Organic & inorganic chemicals: 16.38%
• Cotton yarn, fabrics and handloom products: 13.79%
• Marine products: 27.76%
• Meat, dairy and poultry products: 37.08%
• Handicrafts: 29.63%
• Drugs and pharmaceuticals: 3.84%

The breadth of the growth suggests that the August increase was not limited to a single export category.

India’s Export Performance From April to August

During April-August 2026-27, merchandise exports reached $215.91 billion, up from $183.21 billion in the same period of 2025-26.

That represents growth of 17.85%.

Total exports, including services, were estimated at $399.27 billion during the first five months of the financial year, compared with $345.55 billion a year earlier.

What Could Drive Exports Ahead?

India’s export performance in the coming months will depend on several factors.

Global demand, crude oil prices, exchange rates, geopolitical developments and trade policies in major markets could all influence export growth.

At the same time, India’s growing electronics manufacturing base, engineering capabilities and diversification into new markets could provide support.

The government data already shows strong growth in destinations such as Singapore, Spain, China and Tanzania.

Conclusion

India exports August 2026 data shows a significant improvement in merchandise trade performance.

Exports increased 26.12% to $43.81 billion, while shipments to China increased 52.35%. Electronics, petroleum products, engineering goods and chemicals were among the major contributors to the growth.

The merchandise trade deficit also narrowed to $26.86 billion as imports grew at a slower pace than exports.

For India’s MSMEs and exporters, sustained global demand could create new opportunities, but converting export growth into long-term business expansion will depend on competitiveness, quality, financing and access to international markets.

FAQs

What were India’s exports in August 2026?
India’s merchandise exports stood at $43.81 billion in August 2026, up 26.12% year-on-year.

How much did India’s exports to China increase?
Exports to China increased 52.35% year-on-year in August 2026.

What was India’s trade deficit in August 2026?
India’s merchandise trade deficit was $26.86 billion in August 2026.

Which sectors drove India’s export growth?
Electronics, petroleum products, engineering goods, chemicals and several other sectors recorded strong growth.