India Sept trade deficit narrows to $30.2 bn as exports surge 23%

India's exports surged 23% year-on-year to $44.40 billion in September, while imports grew by a more modest 8% to $74.61 billion, according to PTI, citing official government data. This helped narrow the monthly trade deficit to $30.21 billion, down from $33.00 billion in September 2025. Fiscal year-to-date, overall exports have risen 18.51% to $259.89 billion, with total imports climbing 16.31% to $437.53 billion.

Trade deficite downs as exports surge

Driven by a 26.12% surge in merchandise exports to 43.81billion, India's trade deficit narrowed in August despite higher global crude prices. Exports significantly outpaced the 14.1% increase in imports (70.67 billion), bringing the monthly trade deficit down to $26.86 billion -- a notable improvement from $27.20 billion in August last year and $31.98 billion in July.

In addition, India's combined merchandise and services exports achieved double-digit growth in May 2026, rising to $81.96 billion from $70.76 billion in May 2025. However, a sharper surge in imports which jumped from $77.55 billion to $92.40 billion over the same period widened the trade deficit to $10.51 billion, up from $6.79 billion a year earlier.

Merchandise exports growth

India's merchandise exports grew by 23.04% year-on-year to $44.40 billion in September 2026, up from $36.08 billion in September 2025, according to ANI citing data released by the Ministry of Commerce and Industry on Thursday.

The merchandise trade deficit narrowed to $30.21 billion (down from $33.00 billion in September 2025), as imports rose by 8% to $74.61 billion (compared to $69.08 billion a year ago).

Growth was primarily driven by higher shipments of electronic goods, petroleum products, engineering goods, chemicals, and agricultural products.

Total overall exports (goods and services) reached an estimated $242.60 billion in July-September 2026 the highest ever recorded for a second quarter up from $233.60 billion in April-June.