India’s merchandise exports rose 23% year-on-year to $44.4 billion in September 2026, supported by stronger shipments of electronics, petroleum products, chemicals and engineering goods. Imports increased more slowly, while a sharp decline in gold imports helped narrow the merchandise trade deficit to approximately $30.21 billion. The figures provide a positive signal for India’s export sector, although the country’s overall trade balance remains under pressure from its substantial import requirements.
India’s external trade performance improved in September, offering fresh evidence that Indian manufacturers and exporters are finding opportunities in international markets despite a difficult global economic environment.
According to the latest trade data reported by the Ministry of Commerce and Industry, merchandise exports reached $44.4 billion, compared with $36.08 billion in September 2025. This represents an increase of approximately 23% in one year.
The improvement was accompanied by a slower increase in merchandise imports, which reached $74.61 billion, compared with $69.08 billion a year earlier. The resulting merchandise trade deficit was approximately $30.21 billion. <Cite refs={[“turn794878search0″,”turn794878search3”]}/>
Electronics and engineering goods support export growth
The performance of electronics, petroleum products, chemicals and engineering goods helped drive the September increase.
Electronics exports are particularly important because India has been attempting to expand its role in global manufacturing and supply chains. Greater production capacity, export-oriented investment and demand for manufactured components can help domestic businesses reach markets beyond India.
Engineering goods also represent an important component of the country’s export base, covering a wide range of industrial products and manufactured equipment.
However, one month of stronger exports does not necessarily indicate a permanent shift in India’s trade position. Demand in major overseas markets, commodity prices, shipping costs and trade policies can all influence subsequent results.
Gold imports fall sharply
A notable factor in September’s trade figures was the decline in gold imports.
According to The Economic Times’ report on the latest data, gold imports fell by approximately 81.27%, contributing to the reduction in the overall merchandise trade deficit. <Cite refs={[“turn794878search3”]}/>
Gold imports can fluctuate significantly because of international prices, domestic jewellery demand, investment purchases and seasonal buying patterns.
The sharp fall therefore helped improve the monthly trade balance, but it should not automatically be interpreted as a permanent reduction in India’s demand for imported gold.
The broader trade balance remains a challenge
India’s combined merchandise and services exports were estimated at $80.75 billion in September, up 10.99% from the same month a year earlier. Combined imports were estimated at $94.05 billion, up 8.19%. <Cite refs={[“turn794878search0”]}/>
Services exports are particularly relevant to India because the country has a substantial information technology, consulting, business-process and professional-services sector.
Nevertheless, India’s merchandise imports remain considerably larger than its goods exports. Energy, machinery, electronic components and other imported products are important to domestic consumption and industrial production.
The September figures therefore offer both encouraging and cautionary signals: export growth is strong, but maintaining that momentum will be important.
What happens next?
The coming months will help determine whether September’s performance represents a sustained improvement or a temporary acceleration.
Exporters will need to navigate global demand, trade restrictions, logistics costs and currency movements. Policymakers will also need to balance export competitiveness with the cost of importing essential goods and industrial inputs.
