India’s overall trade deficit narrowed to $13.3 billion in September 2026 from $14.17 billion a year earlier, supported by stronger exports of goods and services. However, the merchandise trade deficit widened compared with August as imports increased faster than exports.

India’s merchandise exports increased 23.04% year-on-year to $44.4 billion in September, compared with $36.08 billion in the same month last year. Shipments of electronic goods, petroleum products, engineering goods, chemicals and agricultural products supported the growth.

Merchandise imports also rose, increasing to $74.61 billion from $69.08 billion a year earlier. As a result, the goods trade deficit stood at $30.21 billion, compared with $33 billion in September 2025. It was higher than the $26.86 billion recorded in August 2026.

Services exports stood at an estimated $36.35 billion in September, while services imports reached $19.44 billion. The surplus from services helped reduce the combined trade deficit, which includes both merchandise and services.

India’s overall exports of goods and services grew 10.99% year-on-year to an estimated $80.75 billion during September. Total imports increased to $94.05 billion from $86.93 billion a year earlier.

Stronger exports could support economic growth and help India manage external payment pressures. However, rising merchandise imports and elevated energy costs remain concerns, particularly as India relies heavily on imported crude oil.

The government is also working to expand access to overseas markets through trade agreements, including deals with the UK and New Zealand, while negotiations with other major partners continue. Sustained export growth will be important for improving India’s trade position in the coming months.

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