New Delhi, October 16, 2026: India’s combined exports of goods and services rose 13.84% to an estimated $476.20 billion during April–September 2026, but the country’s overall trade deficit widened to $74.93 billion as imports grew faster than exports. The latest government data show strong export growth, particularly in electronics and engineering goods in September, even as the rising import bill put pressure on the trade balance.
According to figures released by the Ministry of Commerce and Industry on October 15, total exports increased from $418.31 billion in the corresponding period last year. Imports rose 15.68% to $551.13 billion from $476.42 billion, widening the overall trade deficit from $58.10 billion to $74.93 billion.
Merchandise exports, which cover physical goods shipped overseas, increased 18.51% to $259.89 billion during the first six months of the 2026–27 financial year, compared with $219.30 billion a year earlier.
However, merchandise imports climbed to $437.53 billion from $376.17 billion, pushing the goods trade deficit to $177.64 billion from $156.88 billion.
India’s services sector helped offset part of this shortfall. Services exports were estimated at $216.31 billion during April–September, compared with $199.02 billion a year earlier. The services trade surplus increased to $102.71 billion from $98.77 billion.
The services trade figures include estimates because the latest data released by the Reserve Bank of India cover August 2026. September’s services figures have therefore been estimated by the ministry.
Despite the widening deficit over the six-month period, India’s monthly trade balance improved in September.
Combined exports increased 10.99% to an estimated $80.75 billion in September 2026 from $72.76 billion a year earlier. Imports rose 8.19% to $94.05 billion, leaving a monthly trade deficit of $13.30 billion, compared with $14.17 billion in September 2025.
Merchandise exports performed particularly strongly during the month, rising to $44.40 billion from $36.08 billion.
Electronic goods exports surged 70.44% to $5.31 billion from $3.11 billion in September 2025. Engineering goods exports increased 20.91% to $12.17 billion, while petroleum product exports grew 31.90% to $6.22 billion.
Exports of organic and inorganic chemicals rose 24.21% to $2.94 billion. Cotton yarn, fabrics, made-ups and handloom products also recorded growth of 20.76%.
During April–September, non-petroleum exports increased 15.56% to $218.70 billion, indicating growth beyond petroleum products.
The United States, Singapore, Malaysia, Egypt and China were among the leading destinations contributing to the increase in India’s merchandise export value in September.
The latest figures reveal two different trends in India’s trade performance. While the overall trade deficit widened during the first half of the financial year, September recorded a narrower monthly deficit as exports grew faster than imports.
The data also highlight the role of services exports in offsetting India’s merchandise trade deficit. However, faster import growth over the six-month period meant that the overall trade gap continued to widen despite higher export earnings.
