September
Exports Rise 23% as Merchandise Trade Deficit Narrows; Shipments to US Rise 11%
1.
Merchandise Exports Record Strong Growth
·
India's merchandise exports increased by 23.04%
year-on-year to US$ 44.40 billion in September 2026, compared with US$
36.08 billion in September 2025.
·
Merchandise imports rose to US$ 74.61 billion from
US$ 69.08 billion.
·
The merchandise trade deficit narrowed to US$
30.21 billion from US$ 33 billion a year earlier.
2.
Overall Exports and Trade Deficit
·
Total exports, including merchandise and services,
grew by 10.99% to US$ 80.75 billion in September 2026, compared with US$
72.76 billion a year earlier.
·
Overall imports increased to US$ 94.05 billion from
US$ 86.93 billion.
·
The combined trade deficit narrowed to US$ 13.30
billion from US$ 14.17 billion.
3.
Electronics, Engineering Goods and Petroleum Drive Growth
·
Higher exports of electronic goods, petroleum
products, engineering goods, chemicals and agricultural products supported
merchandise export growth.
·
Electronic goods exports increased by 70.44% to US$
5.31 billion.
·
Petroleum products exports rose by 31.90% to US$
6.22 billion.
·
Engineering goods exports grew by 20.91% to US$
12.17 billion.
·
Organic and inorganic chemicals exports increased
by 24.21% to US$ 2.94 billion.
4. Export
Growth Accelerates in the Second Quarter
·
Overall exports grew by 15.84% during
July–September 2026, compared with 11.84% in the first quarter.
·
India's overall exports reached an estimated US$
242.6 billion in the second quarter, compared with US$ 233.6 billion in
April–June.
·
The July–September figure was the highest ever
recorded for the second quarter, according to the Commerce Ministry's
presentation.
5.
Merchandise Trade Deficit Rises Month-on-Month
·
Merchandise imports increased to US$ 74.61 billion
in September from US$ 70.67 billion in August 2026.
·
Merchandise exports rose to US$ 44.40 billion from
US$ 43.81 billion.
·
The merchandise trade deficit widened to US$ 30.21
billion from US$ 26.86 billion in August.
·
The September deficit was marginally below
economists' expectations of US$ 30.4 billion.
6. Rising
Global Energy Prices Add Pressure
·
Brent crude futures remained above US$ 100 per
barrel amid the Iran war.
·
Attacks around the Strait of Hormuz and escalating
tensions involving Iran and the United States added to concerns over global
energy supplies.
·
Higher energy prices continued to exert pressure on
India's import bill.
7. India
Expands Export Markets Through Trade Agreements
·
India is seeking to diversify its export markets
through trade agreements with key trading partners.
·
A trade agreement with New Zealand was expected to
take effect the following week.
·
India's trade pact with the United Kingdom was
already in force.
·
A broader agreement with the European Union was
moving towards implementation.
8. United
States Remains India's Largest Merchandise Export Destination
·
India's merchandise exports to the United States
increased by 11.1% to US$ 50.81 billion during April–September 2026,
compared with US$ 45.73 billion in the corresponding period last year.
·
Imports from the US rose by approximately 26% to
US$ 32.33 billion from US$ 25.66 billion.
·
India's merchandise trade surplus with the US
narrowed to US$ 18.48 billion from US$ 20.07 billion.
9.
India–US Trade Agreement Negotiations Progressing
·
Commerce Secretary Rajesh Agrawal said negotiations
for the proposed India–US trade agreement were progressing in the right
direction.
·
Both sides were working towards concluding and
signing the agreement at the earliest.
·
Finalisation would depend on the broader US tariff
framework, with a parallel process underway in the US under Section 301.
·
India is seeking preferential market access to
enable Indian exporters to compete more effectively with exporters from other
countries.
Overall
Assessment
India recorded strong merchandise export growth in
September 2026, led by electronics, petroleum products, engineering goods and
chemicals. Overall export growth also accelerated in the second quarter.
However, rising imports and elevated global energy prices remain concerns.
India is pursuing trade agreements with major partners, while negotiations with
the United States aim to secure preferential market access for Indian
exporters.
India's
merchandise exports rose 23.04% year-on-year to $44.40 billion in September 2026,
up from $36.08 billion a year earlier, according to data released by the Ministry
of Commerce and Industry on Thursday (15 October, 2026).
The
merchandise trade deficit narrowed to $30.21 billion from $33 billion in September
last year, even as imports increased to $74.61 billion from $69.08 billion, the
data showed.
India's
overall exports, including merchandise and services, grew 10.99% to an estimated
$80.75 billion in September, compared with $72.76 billion a year earlier.
Overall
imports rose to $94.05 billion from $86.93 billion, while the combined trade deficit
narrowed to $13.30 billion from $14.17 billion, according to the ministry.
Electronics, engineering goods
drive export growth
Commerce
secretary Rajesh Agrawal said merchandise shipments were driving the growth in exports.
"If
you look at merchandise exports in September, they are at $44.40 billion, which
is 23.04 per cent higher than last September," he said during a press briefing,
according to news agency ANI.
Higher
shipments of electronic goods, petroleum products, engineering goods, chemicals
and agricultural products supported the increase.
Agrawal
also said export growth had accelerated in the second quarter of the current financial
year. Overall exports grew 15.84% in July-September, compared with 11.84% in the
first quarter, he said.
According
to the ministry's presentation, India's overall exports reached an estimated $242.6
billion in the second quarter, compared with $233.6 billion in April-June. The July-September
figure was the highest ever recorded for the second quarter.
Imports rise as merchandise
trade gap narrows
Merchandise
imports increased to $74.61 billion in September from $70.67 billion in August,
while exports rose from $43.81 billion to $44.40 billion over the same period, according
to government data.
The
merchandise trade deficit stood at $30.21 billion, marginally below economists'
expectations of $30.4 billion in a Reuters poll. However, it was higher than the
$26.86 billion deficit recorded in August.
Global
energy prices remain a factor in India's import bill. Brent crude futures have stayed
above $100 a barrel amid the Iran war, while attacks around the Strait of Hormuz
have increased.
Iran
has said it is stepping up strikes in response to the US blockade of its ports and
tougher sanctions introduced last month.
India looks to expand export
markets
India
is seeking to diversify its export markets through trade agreements with key partners.
A trade deal with New Zealand is set to take effect next week, while India's trade
pact with Britain is already in force. A broader agreement with the European Union
is moving towards implementation.
The
United States remained India's largest merchandise export destination in the first
half of the current financial year, despite tariff-related disruptions.
India's
merchandise exports to the US rose 11.1% to $50.81 billion during April-September
2026, compared with $45.73 billion a year earlier.
Imports
from the US increased 26% to $32.33 billion from $25.66 billion, according to data
presented by the commerce ministry.
India's
merchandise trade surplus with the US narrowed to $18.48 billion from $20.07 billion
in the corresponding period last year.
Agrawal
said negotiations for the proposed India-US trade agreement were progressing in
the right direction, with both sides working towards concluding the deal at the
earliest.
"The
negotiations are in the right direction. Probably, we are in a very good zone. We
anticipate closing the deal and signing it at the earliest possible time,"
he said.
He
said the agreement would depend on the finalisation of the broader US tariff framework,
with a parallel process underway under Section 301.
"The
deal has to be signed when the overall tariff structure is getting formalised. There
is parallel work being done in the US also to get back the tariff structure based
on some of the outcomes of the 301," he said.
Agrawal
added that India was seeking preferential access to the US market to help its exporters
compete with those from other countries.
"When
you do a trade deal, it gives you not only market access in each other's markets;
it gives you preferential market access in a particular market," he said.