India's exports surge 23% in September to $44.4 billion; trade deficit narrows

New Delhi: India's merchandise exports jumped 23.04 percent to USD 44.4 billion in September, driven by strong shipments of petroleum products, electronic goods and chemicals, even as higher crude oil imports continued to put pressure on the country's trade balance.

According to Commerce Ministry data released on Thursday, exports rose from USD 36.08 billion in September 2025, while imports increased 8 percent to USD 74.61 billion.

Follow The PSUWatch Channel on Whatsapp

The merchandise trade deficit narrowed to USD 30.21 billion from USD 33 billion a year earlier, largely due to a steep decline in precious metal imports. However, the deficit widened sequentially from USD 26.86 billion in August.

Electronics exports jump 70%

Electronic goods emerged as a major growth driver, with exports surging 70.44 percent to USD 5.3 billion in September.

Petroleum product exports rose 31.9 percent to USD 6.2 billion, while chemical shipments increased 24.21 percent to USD 3 billion.

Higher international crude oil prices, driven by the ongoing West Asia crisis, helped Indian refiners secure better realisations from petroleum product exports.

However, elevated oil prices also pushed up India's import bill. Crude oil imports surged 30.76 percent to USD 18.34 billion during September, with Brent crude trading above USD 100 per barrel in recent weeks.

Gold imports plunge

A sharp contraction in precious metal imports helped offset the impact of rising crude oil purchases.

Gold imports plunged 81.27 percent to USD 1.8 billion, while silver imports declined 49.11 percent to USD 665 million.

The steep fall in bullion imports played a significant role in narrowing the year-on-year merchandise trade deficit, despite an overall increase in imports.

Half-year deficit widens

During April-September 2026-27, India's merchandise exports increased 18.51 percent to USD 259.89 billion, compared with the corresponding period last year.

Imports grew 16.31 percent to USD 437.53 billion, pushing the trade deficit to USD 177.64 billion from USD 156.88 billion a year earlier.

The widening half-year deficit indicates that India's import requirements continue to outpace its export earnings in absolute terms, notwithstanding the strong growth in outbound shipments.

Exports may cross USD 500 billion

Commerce Secretary Rajesh Agarwal said merchandise exports were maintaining their growth momentum and expressed confidence that shipments could cross USD 500 billion in the current financial year if the trend continued.

India's merchandise exports stood at USD 442 billion in 2025-26.

Meanwhile, government estimates placed services exports at USD 36.35 billion in September, against services imports of USD 19.44 billion, indicating a services trade surplus of USD 16.91 billion.

Agarwal said higher oil prices and disruptions linked to the West Asia crisis had affected certain services sectors, including travel and tourism.

Follow PSU Watch on LinkedIN

Exporters remain optimistic

Federation of Indian Export Organisations (FIEO) President SC Ralhan said Indian exporters were navigating global uncertainty by expanding their presence across markets and product categories.

"This strong first-half performance provides a firm foundation to advance towards India's USD 1 trillion export ambition. The priority now is to translate this momentum into sustained orders and deeper market penetration. With an enabling policy environment, India can expand high-value and technology-intensive exports, build on its traditional strengths and strengthen its participation in global value chains," he said.

While September's export performance signals resilience in India's external trade, the widening deficit during the first half of FY27 and continued exposure to volatile crude oil prices remain significant challenges for the country's trade outlook.

(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated.)