India’s merchandise exports recorded a strong acceleration in September 2026, rising 23.04% year-on-year to $44.40 billion from $36.08 billion a year earlier. The performance reflects improving export momentum despite global trade uncertainties, geopolitical disruptions and elevated logistics costs. The surge also strengthened India’s overall export performance in the second quarter of the financial year, although rising imports continue to challenge the country’s trade balance.
Merchandise Exports Drive the Upswing
September’s merchandise exports increased from $43.81 billion in August, reaching their highest level in four months. According to the Ministry of Commerce and Industry, the growth was broad-based, with petroleum products, meat, dairy and poultry products, handicrafts and certain cereals contributing significantly.
Exports to the United States, one of India’s largest goods markets, rose 11%, demonstrating continued demand despite uncertainties in global trade. Cumulative merchandise exports during April–September reached $259.89 billion, marking an 18.51% increase over the corresponding period last year.
The figures suggest that Indian exporters are capitalising on opportunities across multiple product categories rather than relying entirely on a single industry or destination.
Combined Goods and Services Reach a Record
India’s overall exports of merchandise and services were estimated at $242.6 billion during July–September, compared with $233.6 billion in April–June. The government described the July–September figure as the highest-ever export value recorded for a second quarter.
Services exports remain an important contributor, helping diversify India’s external earnings and offset some pressure from the merchandise trade deficit. The latest figures indicate that the export sector is maintaining momentum even as international shipping routes, freight expenses and geopolitical developments complicate trade.
What Is Behind the Export Surge?
Several factors appear to have supported September’s performance:
· Stronger product demand: Growth in petroleum products and agricultural and food-related shipments supported merchandise earnings.
· Diversified export categories: Handicrafts and other value-added products contributed to the broad-based increase.
· Resilience in major markets: Higher shipments to the US indicate that demand in a key destination remains supportive.
· Services-sector strength: Services exports helped lift the overall value of goods and services traded.
Sustaining these gains will require competitive pricing, reliable logistics and continued access to major international markets.
Imports Keep the Trade Deficit in Focus
Merchandise imports rose nearly 11% year-on-year to $74.61 billion in September, against $69.08 billion a year earlier. Consequently, the merchandise trade deficit widened to $30.21 billion from August’s $26.86 billion, although it remained below September 2025’s $33 billion.
The combined goods-and-services trade deficit narrowed to $13.30 billion from $14.17 billion a year earlier, reflecting the cushioning effect of services exports.
Turning Export Momentum into Lasting Strength
September’s performance signals stronger external-sector momentum, but one month’s growth cannot guarantee a sustained recovery. India must broaden gains in electronics, engineering goods and labour-intensive manufacturing while strengthening agricultural and value-added exports. Managing energy costs, freight expenses and import dependence will also be essential.
The real test is whether record export growth can become a durable trend. If India combines market diversification with stronger domestic manufacturing and competitive logistics, the current momentum could support employment, investment and economic resilience while helping contain the pressure on its trade balance.
(With agency inputs)
