India’s trade deficit shrank a bit in August, dropping to $26.49 billion from $27.35 billion the month before, as per the latest data from the Commerce Ministry. This comes amid tricky global trade issues, but Indian exports are holding strong thanks to smart government moves.
Exports took a small hit, falling to $35.1 billion in August from $37.24 billion in July. The main culprit? US tariff hikes stirring up uncertainty in international markets. Imports also dipped, landing at $61.59 billion compared to $64.59 billion last month. Still, Commerce Secretary Sunil Barthwal praised Indian exporters, saying, “Despite all the global uncertainties and trade policy headaches, our exporters have performed well. This shows the government’s policies are working.”
Commerce and Industry Minister Piyush Goyal is stepping up too. He assured exporters that the government is working hard to create a supportive setup for them to tackle rising trade tariffs. Earlier this month, Goyal held a key meeting with Export Promotion Councils and industry groups to map out strategies for the changing trade world.
In a big win for exporters, the government just extended the export obligation timeline under the Advance Authorisation Scheme. For products under mandatory Quality Control Orders (QCOs), the period now stretches from 6 months to 18 months. The Directorate General of Foreign Trade (DGFT) announced this, following advice from the Department of Chemicals and Petrochemicals. It’s similar to recent changes for QCOs from other areas like textiles, also bumped up to 18 months.
This extension gives much-needed breathing room to exporters in the chemicals and petrochemicals sector. It simplifies trade rules and boosts the competitiveness of Indian goods on the global stage, according to officials. The Advance Authorisation Scheme lets importers bring in duty-free raw materials for exports without strict QCO checks, keeping operations smooth—especially vital for the chemical industry, which relies heavily on these perks.
The timing couldn’t be better, with the US under Donald Trump slapping high tariffs on imports, including a steep 50% rate on India for buying Russian oil. This has sparked economic jitters worldwide. Yet, India is pushing back by focusing on key sectors. The chemicals and petrochemicals industry, for instance, hit $46.4 billion in exports during 2024-25, making up 10.6% of the country’s total exports. The government is all in on growing this vital area to fuel overall economic progress.
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