India's Trade Deficit Shrank and Jobless Rate Eased In August, Vehicle Sales Dropped 9%

Arjun Pandit
16 Sep, 2025
Mumbai

India's market indexes advanced on Tuesday following positive economic data. 

The Sensex index increased 0.5%, the Nifty index edged up 0.4%, and the Indian rupee strengthened to 88.04 against the U.S. dollar. 

Overall trade deficit shrank, jobless rate fell, but passenger vehicle sales fell sharply in August. 

 

India's Trade Deficit Improved In August

India's overall exports and imports advanced, and the trade deficit shrank in August, according to the latest data released by the Ministry of Commerce and Industry. 

Overall exports increased 10% to $69.2 billion from $63.2 billion, imports decreased 7% to $79.0 billion from $85 billion, and the trade deficit shrank to $9.9 billion from $26.7 billion a year ago, respectively. 

Goods exports rose to $35.1 billion from $32.9 billion, and imports shrank to $61.6 billion from $68.5 billion a year ago, respectively.

Exports of gems & jewelry increased by 15.6% to $2.3 billion from $2.0, petroleum products increased by 6.5% to $4.5 billion from $4.2 billion, and drugs & pharmaceuticals increased by 6.9% to $2.5 billion from $2.3 billion a year ago, respectively. 

Services exports surged to $34 billion from $30.3 billion, and imports rose $17.5 billion from $16.5 billion a year ago, respectively. 

 

August's Jobless Rate Dropped to Record Low

India's jobless rate improved for the second consecutive month to August and dropped to a record low, according to the latest update from the National Statistical Office. 

Overall, the jobless rate edged lower to 5.1% from 5.2% in July, and the labor participation rate inched higher to 55% from 54.9% in July. 

 

India's Vehicle Sales Dropped 9% In August

Passenger vehicle sales plunged 9% from a year ago in August as consumers retrenched, according to a report released by the Society of Indian Automobile Manufacturers.

Passenger vehicle sales dropped to 280,839 units from 301,000 in the previous month, amid stagnant wages and elevated vehicle prices. 

The monthly data excludes sales from Mercedes-Benz, BMW, Jaguar Land Rover, and Volvo. 

 "The landmark decision of the Government of India to reduce the GST (Goods and Services Tax) rates on vehicles will go a long way in enabling broader access to mobility and injecting fresh momentum into the Indian automotive sector in the upcoming festive season," said Rajesh Menon, Director General of SIAM.

 

India Indexes and Stocks 

The Sensex index increased 0.5% to 82,171.76, and the Nifty index gained 0.4% to 25,179.35. 

NCC Ltd. increased 1.6% to ₹215.55 after the company won a 2,090.5 crore order from the Water Resources Department of Bihar.

Adani Enterprises advanced 0.4% to ₹2,392.90 after the company won an order worth 4,081 crore for constructing a 12.9 km ropeway connecting Sonprayag to Kedarnath. 

NTPC Green Energy advanced 2.2% to ₹105.79, and the company commissioned a 25 MW solar energy project in Gujarat.