FX.co ★ India Trade Deficit Narrows

In August 2025, India's merchandise trade deficit stood at $26.49 billion, a slight improvement from the $29.7 billion deficit recorded during the same month the previous year. This reduction can be attributed to a 10.1% decrease in imports, amounting to $61.59 billion. This decline was primarily driven by lower prices in crude oil and major energy commodities, which are significant components of India's foreign imports. Conversely, merchandise exports experienced a rise of 6.7%, reaching $35 billion during the same period, despite the implementation of a 25% duty in the second week of August, which doubled by month's end.