FX.co ★ Indian Trade Deficit Holds Despite Volatile Energy

India’s merchandise trade deficit stood at $26.86 billion in August 2026, virtually unchanged from the $26.68 billion recorded in the same month a year earlier, despite a turbulent macroeconomic environment in the September quarter. Imports increased 14.7% year-on-year to $70.67 billion, driven by a sharp rise in energy costs as the war in the Middle East and capacity cuts at Russian refineries disrupted supplies. Exports grew at an even faster pace, climbing 25.5% to $43.81 billion.