Government data released on Thursday showed that India's merchandise exports grew by 23% year-on-year to $44.4 billion in September 2026, and the trade deficit fell to $30.21 billion, from $33 in the same month last year. This was reflected in the performance of external trade in the month as exports accelerated more than imports. The value of merchandise imports rose 8% from the previous year to $74.61 billion in September. But the exports grew even faster and helped to reduce the trade deficit by $2.79 billion from September 2025.

During a press briefing, Commerce Minister Rajesh Agarwal said that exports continued to grow at a pace, highlighting the expansion of merchandise trade, in the wake of India's imports.

Key Highlights

• India's merchandise exports increased 23% to $44.4 billion and the trade deficit decreased to $30.21 billion in September.
• Exports grew by 18.51% to $259.89 billion while imports grew by 16.31% in April-September FY27, producing the best export growth since the last quarter of FY25.​

India’s Exports Grow Faster Than Imports in September

In the September data exports grew more rapidly than imports. The Inda's merchandise exports increased to $44.4 billion, while imports stood at $74.61 billion, resulting in a merchandise trade deficit of $30.21 billion.

The narrowing deficit indicates that the difference between the value of goods India exported and imported declined compared with the year-ago period. The performance in exports aided to dampen down the difference between imports and exports, which remained negative throughout.

New data indicates that India's exports of goods continued to march forward. Maintaining this trend will continue to be significant for the country's trade balance as international economic conditions and demand for imports will affect value of goods entering and leaving the country.

India’s Merchandise Exports Rise 18.51% in April-September FY27

There was also a rise in India's trade in merchandise goods in the first half of the current fiscal year. Merchandise exports rose 18.51% to $259.89 billion from the same period of a year ago during the last 12-month period between April 2026 and September 2026.

Imports rose 16.31% during the same period to $437.53 billion. The overall trade balance of merchandise items continued to remain in deficit, but the rate of growth of exports was higher than that of imports during the first half of FY27.

The numbers indicated strong export growth continued into September, with shipments growing by double figures over the six-month period. Meanwhile, increased imports indicate that India's demand for imports from other markets remains high.

Also Read: India's Exports to BRICS Markets Surge 34% in April-August

What the Latest Trade Data Means for India’s Economy?

The September trade statistics underscore the significance of export performance in controlling merchandise trade deficit in India. If exports are increasing at a faster rate than imports, the difference in the value of goods sold and goods purchased abroad can become smaller, as in the recent monthly statistics.

But a smaller trade deficit does not necessarily equate to a reduction in the deficit. Merchandise imports into India are still much higher than exports in September and in the April to September FY27.

In the years ahead, the India export expansion, import demand and global markets developments will continue to determine India's trade balance. The new data offers some insights into the exporting momentum of the country, and the ongoing trade imbalance signals the disparity between the value of imports and exports of goods.