New Delhi, Sep 15 (NationPress) The 6.7 percent year-on-year increase in exports for August is a promising development for India’s export industry, particularly against the backdrop of persistent global challenges and geopolitical uncertainties, according to the Federation of Indian Export Organisations (FIEO) on Monday.

India’s merchandise exports witnessed a notable growth of 6.7 percent last month, amounting to $35.1 billion, as opposed to $32.89 billion in August 2024.

Meanwhile, imports fell by 10.12 percent to $61.59 billion, down from $68.53 billion during the same timeframe last year.

This has led to a significant contraction in the trade deficit to $26.49 billion, in comparison to $35.64 billion in August 2024.

SC Ralhan, President of FIEO, remarked that the surge in exports is a positive and encouraging development.

“The drop in imports exceeding 10 percent has contributed to reducing the trade deficit, which is now considerably lower than the same month last year,” Ralhan added.

He further noted that this achievement highlights the resilience and competitiveness of Indian exporters across a variety of sectors.

The shift in export markets, emphasis on high-growth sectors, and the government's ongoing support through essential policy initiatives have been pivotal in driving this positive trend.

From April to August 2025-26, India’s total merchandise exports reached $184.13 billion, while imports were recorded at $306.52 billion.

FIEO's chief highlighted the necessity for ongoing efforts in the upcoming months to capitalize on this momentum, ensuring sustained and accelerating export growth, which requires a focus on improving the business environment, expediting trade processes, enhancing skills, and facilitating access to global markets.

He urged the government to provide increased support to MSMEs and ensure timely distribution of export incentives, enabling exporters to remain globally competitive, especially during this period when major economies are grappling with tariff challenges.

FIEO remains hopeful that with strategic initiatives and stabilization in global markets, India is well-equipped to further enhance its trade performance in the remaining fiscal period.

“Looking ahead, we expect exports to grow robustly and sustainably, backed by the government's persistent efforts to diversify the export market and enhance India’s export competitiveness,” stated PHDCCI chairman Hemant Jain.