India's merchandise exports rose 23% in September 2026 to $44.4 billion, according to trade data released by the government on 15 October. Imports grew far more slowly, by 8% to $74.61 billion. The merchandise trade deficit for the month therefore narrowed to $30.21 billion, compared with $33 billion in September 2025.
A month where exports outran imports
The headline is the gap between the two growth rates. When exports grow at nearly three times the pace of imports, the deficit shrinks even though India still buys far more goods than it sells. September's deficit was $2.79 billion lower than a year earlier.
Commerce Secretary Rajesh Agarwal, briefing reporters on the numbers, said exports were keeping up their growth momentum.
The half-year picture
The first half of FY27 tells a similar story, though the margin between exports and imports is closer. For April to September 2026, merchandise exports grew 18.51% to $259.89 billion. Imports rose 16.31% to $437.53 billion over the same six months.
India remained in merchandise trade deficit over the period. In value terms, imports over the six months stayed well above exports, so strong export growth narrowed the gap without closing it. The month-on-month figures matter, but boards tracking import costs and export order books will look at the six-month trend, which shows both sides of the ledger expanding at a fast pace.
Exports to the United States
Separate data from the Commerce and Industry Ministry put India's merchandise exports to the United States at about $51 billion for April to September 2026. That compares with $45.73 billion in the same period last year. The rise came despite disruptions linked to tariffs. The report did not give a month-by-month split of the US figure.
According to the Commerce Secretary, the increase was led by higher shipments of electronic goods, petroleum products, engineering goods, chemicals and agricultural products.
Trade talks with Washington
Mr Agarwal also said negotiations on the proposed India-US trade agreement were moving in the right direction. He said both sides want to conclude the agreement as early as possible. No timeline or terms were given.
For exporters, the US figures and the comments on the trade pact are the two pieces to watch together. The shipment numbers show demand held up through a period of tariff uncertainty. The talks will decide the terms on which that trade continues.
What boards and CFOs should note
Finance teams in export-facing businesses have three data points to work with. September exports grew 23%, well ahead of imports. First-half exports were up 18.51% on the year. Shipments to the US rose to about $51 billion despite tariff disruption, with electronics, petroleum products, engineering goods, chemicals and farm goods doing the lifting.
These reports do not break down services trade or imports by commodity, so the picture for any single product line is not yet visible from them.
Sources: Business Today, 15 October 2026; News On AIR, 15 October 2026. This is a summary of news reports, published as general information. It is not legal, tax or investment advice.
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