India’s September merchandise exports rise 23% as trade deficit narrows

<p>India's merchandise exports rose 23. 04% to $44. 40 billion in September 2026, compared to $36. 08 billion a year ago, as the</p>

The country's imports rose by 8 per cent to $74.61 billion in September.

India's merchandise trade deficit widened to $30.21 billion in September from $26.86 billion in August as imports grew faster than exports, government data released on Thursday showed, amid rising oil prices and supply disruptions linked to the escalating US-Iran conflict.The deficit was broadly in line with economists' expectations of $30.4 billion, according to a Reuters poll.<iframe src="https://economictimes.indiatimes.com/dynamicchart?tab=EXP&year=1&type=line" width="100%" height="520" frameborder="0" scrolling="yes" border="0"></iframe>Merchandise imports rose to $74.61 billion in September from $70.67 billion in the previous month, while exports increased marginally to $44.40 billion from $43.81 billion.The widening trade gap comes as the conflict involving the United States and Iran continues to disrupt global energy supplies, raising inflation concerns for India, the world's third-largest oil importer.Brent crude futures have remained above $100 per barrel amid the conflict, while attacks around the Strait of Hormuz have intensified over the past 10 days. Iran has said it is escalating strikes in response to the US blockade of its ports and tougher sanctions imposed last month.Also Read: India's trade deficit with China crosses USD 100 bn in first 9-monthsAgainst this backdrop, the Reserve Bank of India raised interest rates earlier this month to contain inflationary pressures and subsequently announced measures to support the rupee.Despite the widening deficit, export growth remained broad-based across several sectors.Trade Secretary Rajesh Agrawal said the increase reflected "India's strength across sectors including petroleum products, meat, dairy, poultry, electronic goods, handicrafts, and engineering goods."India is also seeking to diversify its export destinations, with its trade agreement with New Zealand scheduled to take effect next week, its pact with Britain already operational and a broader agreement with the European Union moving towards implementation.Automobile exports provided some support, rising 22.5% year-on-year to 684,481 vehicles in September 2026, according to separate data released by the Society of Indian Automobile Manufacturers (SIAM).Two-wheeler exports led the increase, jumping 26.8% to 544,797 units, although passenger vehicle shipments declined 2.2%.Meanwhile, services exports were estimated at $36.35 billion in September, compared with imports of $19.44 billion, according to trade ministry figures.Gold imports declined to $1.8 billion from $2.3 billion in August, when purchases had increased due to inventory restocking ahead of the festive season.During the first six months of FY27, gold imports fell 27.32% year-on-year to $19.27 billion.The United States remained India's largest export destination, with merchandise shipments rising to $50.81 billion during April-September from $45.82 billion in the corresponding period last year.

Indian exports to China registered a robust 40.7 per cent

India’s exports to China rose 40.7% to $19.26 billion between January and September 2026. However, imports from China grew 23.3% to $125.19 billion, pushing India’s trade deficit to $105.93 billion in just nine months. The deficit is on track to surpass the record set in 2025, as concerns over trade imbalances and market access continue.

The widening imbalance has remained a source of concern for New Delhi, with the deficit figuring in last month’s talks between Prime Minister Narendra Modi and Chinese President Xi Jinping on the sidelines of the BRICS summit.

Two-way trade between January and September was up 25.4% to $144.45 billion, while India’s imports from China continued to rise, up 23.3% to $125.19 billion