Friday, 16 October 2026 · Full edition

India merchandise exports rise 23% as trade deficit narrows

What happened

India's merchandise exports climbed 23% in September. The goods trade deficit narrowed to $30.21 billion from $33 billion in September last year, even as merchandise imports rose to $74.61 billion from $69.08 billion. Separately, shipments to the United States grew 11%, while the services sector recorded a rare decline.

Why it matters

The export surge helps temper India's trade deficit despite an increase in import costs. The growth in U.S.-bound shipments suggests resilient demand in a key export market, partially offsetting the volatility seen in the services sector during the month.

Bigger picture

These figures highlight the evolving balance of India's external trade. The country is navigating a complex environment where rising goods exports and import volume expansion collide with fluctuating services performance, impacting overall macroeconomic indicators.

Watch next

Monitor subsequent monthly trade releases for sustained export momentum and signs of recovery in the services sector.

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