India Exports Jump 23% to $44.4 Billion in September, Deficit Eases

India's factories and exporters had a strong September. Merchandise exports jumped 23.04 per cent to $44.4 billion last month from $36.08 billion a year earlier, according to data released by the Commerce Ministry on Thursday, October 15. Imports grew at a much slower pace, which helped the trade deficit narrow to $30.21 billion from $33 billion in September 2025.

The surge was driven by higher shipments of electronic goods, petroleum products, engineering goods, chemicals and farm products, and it pushed India's overall exports to a record for the July–September quarter.

September 2026 trade data at a glance

What drove the jump

Electronics continued to be the star performer. Shipments of electronic goods grew by around 70 per cent from a year ago, as reported. Petroleum product exports rose by close to 32 per cent and chemicals by about 24 per cent. Engineering goods and agricultural products also added to the momentum.

Briefing reporters, Commerce Secretary Rajesh Agrawal said India's exports were maintaining their growth momentum, and pointed out that overall export growth in the second quarter of the financial year stood at 15.84 per cent, up from 11.84 per cent in the first quarter.

Imports grew more slowly

On the other side of the ledger, imports rose about 8 per cent to $74.61 billion. Because exports grew almost three times as fast, the gap between what India buys and sells abroad shrank by roughly $2.8 billion compared with last September. Once services are included – where India runs a large surplus thanks to IT and business services – the overall trade deficit was an estimated $13.30 billion, slightly lower than a year ago.

What it means for India

A narrower trade deficit is good news for the rupee and for the current account, at a time when global trade is being reshaped by tariff battles and conflict in West Asia. Strong exports also mean more orders – and jobs – for manufacturers, especially in electronics hubs such as Tamil Nadu, Uttar Pradesh and Karnataka.

The data adds to a run of upbeat economic signals this week. The IMF recently raised its India growth forecast for FY27 to 7 per cent, and stock markets have rallied. However, retail inflation climbed to 5.54 per cent in September on the back of a spike in onion prices, so the picture is not all rosy for households.

The trade deal factor

Exporters are also watching negotiations on the India-US trade agreement closely. Commerce Minister Piyush Goyal has said the first tranche is finalised, with legal vetting and final contours still pending. A deal that lowers US tariffs on Indian goods could give another lift to sectors like textiles, engineering and gems and jewellery, which face stiff competition in the American market.

Why the services number matters

India's goods trade almost always runs a deficit, because the country imports large amounts of crude oil, gold, electronics components and machinery. Services – software, consulting, back-office work and travel – usually make up for a big part of that gap. In September, estimated services exports were about $36 billion, which is why the combined trade deficit of $13.3 billion is far smaller than the goods gap alone. Keeping both engines firing is key to a stable rupee and comfortable foreign exchange reserves.

What happens next

October data, due in mid-November, will show whether the momentum holds through the festive season, when import demand – particularly for gold – usually rises. The government will also be hoping the April–September pace keeps India on track for record annual exports in 2026-27. For now, September's numbers offer a strong signal that Indian goods are finding more buyers abroad.

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