India's Exports Surge to Four-Month High Amid Global Challenges
Significant Growth in Merchandise Exports
Representational Image
New Delhi, Oct 15: India's merchandise exports have shown a remarkable increase of 23.04 percent year-on-year, reaching a four-month peak of $40.4 billion in September, despite ongoing global market uncertainties and shipping disruptions caused by the escalating conflict in the Middle East, according to official data released on Thursday.
Commerce Secretary Rajesh Agarwal noted that the upward trend in India's exports is persisting, reflecting a steady momentum in outbound shipments.
The rise in goods exports was fueled by a widespread increase across various sectors, particularly in petroleum products, meat, dairy, poultry, handicrafts, and certain cereals, he mentioned.
During the same month, imports increased by 8 percent to $61 billion, primarily due to rising crude oil prices in the global market.
This export boom also contributed to a reduction in the trade deficit, which narrowed to $21 billion year-on-year from approximately $30 billion recorded in September 2025.
However, compared to the previous month of August, the trade deficit was higher than the $16.86 billion reported.
For the period from April to September, total goods exports reached $189.89 billion, marking an almost 19 percent increase year-on-year.
In the first half of the financial year 2026-27 (FY27), imports rose by 16 percent year-on-year to $157.53 billion, resulting in a merchandise trade deficit of $67.64 billion during this six-month timeframe.
The robust growth in merchandise exports has positively impacted their contribution to the gross domestic product (GDP), reversing a trend of decline observed over the last three financial years. Exports represented 14 percent of GDP in the first quarter of FY27, according to the latest statistics.
After experiencing a slowdown in global demand during FY24 and FY25, coupled with uncertainties from US tariff issues in FY26, the export share in GDP fell to 11.3 percent in FY26 from 11.7 percent in FY25.