Mint Quick Edit | India’s August trade data reveals robust export shipments in spite of rough seas

The country's merchandise exports rose sharply last month to $43.8 billion against steep odds. Global woes are far from over, with oil prices and bond yields soaring, but India’s trade pacts could help retain this fiscal year’s export momentum.

There’s further evidence of India’s growth defying global headwinds. Government data released on Tuesday showed India’s goods exports jumped 26% from a year earlier to $43.8 billion in August.

This is notable considering that global demand has been buffeted by tariff havoc started by the US, apart from unending military wars in Europe and West Asia. Indian imports grew 14% to $70.7 billion, although their slower pace meant India’s trade deficit narrowed to $26.9 billion last month.

That exports for April-August are also up a robust 18% at $215.9 billion suggests that this export momentum isn’t a flash in the pan. The government’s trade deal with the UK has been operationalized while another with the EU is moving closer to implementation.

These, along with others that kicked in earlier, should support trade with deal partners and thus help strengthen the Indian economy amid a bleak global outlook.

This week’s spike in crude oil to nearly $110 a barrel has sent bond yields surging globally; the US 10-year Treasury bond has exceeded the psychologically significant 5% mark. This could raise credit costs around the world and weigh on global growth.