India Export Engine Gains Speed as Goods Shipments Jump 23 Percent

 

TRADE  /  INDIA

September exports reached $44.40 billion, while the merchandise trade gap narrowed year on year but widened from August.

India’s merchandise exports rose to $44.40 billion in September 2026. Image: Biz Masala illustration.

By Biz Masala Desk  |  20 October 2026

India’s export momentum strengthened in September, with merchandise shipments rising 23.04% from a year earlier to $44.40 billion. But the headline trade-gap story needs a time-period check: the $30.21 billion merchandise deficit was smaller than a year ago and larger than August’s $26.86 billion.

The Commerce Ministry’s provisional release also puts first-half merchandise exports at $259.89 billion, up 18.51% year on year. The September rise was led by electronics, petroleum products, chemicals and engineering goods. Official September trade release

The export surge in perspective

The year-on-year jump is broad enough to show up across several large product groups, though no single month can establish a durable trend. Electronics exports rose 70.44% to $5.31 billion, petroleum products gained 31.90% to $6.22 billion, and engineering goods advanced 20.91% to $12.17 billion. Organic and inorganic chemicals grew 24.21% to $2.94 billion.

Merchandise exports and imports, September 2025 versus September 2026. Source: Ministry of Commerce and Industry.

September merchandise trade	2025	2026	Change
Exports	$36.08bn	$44.40bn	+23.04%
Imports	$69.08bn	$74.61bn	+8.01%
Trade deficit	$33.00bn*	$30.21bn	Narrower YoY

*September 2025 deficit is calculated from the ministry’s rounded export and import values. September 2026 ministry figures are provisional.

The deficit has two comparisons

A smaller gap than last September, but a larger one than August. Sources: Ministry of Commerce and Business Standard.

The arithmetic is straightforward: September exports grew faster than imports compared with last year, bringing the merchandise deficit down from about $33 billion. Yet imports rose faster than exports between August and September, lifting the deficit from $26.86 billion to $30.21 billion. “Narrowed” is accurate only when the comparison is year on year.

August and September comparison, and the year-on-year contextBusiness Standard trade report

The distinction matters for readers assessing near-term pressure on the external account. The goods balance is only one part of India’s external trade picture: the ministry estimated September services exports at $36.35 billion, down from $36.67 billion a year earlier. It cautioned that September services figures are estimates because the latest RBI services data available was for August.

Engineering exporters eye a record year

Engineering goods exports reached $12.17 billion in September, up 20.91% year on year. Image: Biz Masala illustration.

Engineering goods added to September’s gains, rising to $12.17 billion. Over April–September, engineering exports reached $70.87 billion, about 20% above the same period a year earlier. EEPC India chairman Pankaj Chadha said the sector could reach an all-time high of $150 billion this fiscal year, citing growth in markets including the United States and stronger shipments of iron and steel products and machinery.

That $150 billion figure is an industry forecast, not a government target or a guaranteed outcome. The official record for FY2025–26 was $122.43 billion, which sets a high base for the current year. Hitting the forecast would require a marked increase in second-half shipments, so market access, demand and logistics will remain decisive.

EEPC chairman’s FY27 forecast and first-half exportsBusiness Standard / PTI report

Official FY2025–26 engineering export recordPIB background release

What to watch next

Electronics were the fastest-growing major export category in September, with shipments up 70.44% year on year. Image: Biz Masala illustration.

The next monthly releases will show whether September’s acceleration holds. Electronics’ 70.44% increase is striking, while the continued rise in engineering goods and petroleum products adds breadth. At the same time, imports remain substantially larger than merchandise exports, and the first-half merchandise deficit rose to $177.64 billion from $156.88 billion a year earlier. That cumulative widening is a reminder that one strong export month does not erase the wider import bill.

For businesses, the signal is encouraging but conditional: export growth is gaining traction across manufacturing categories, while the trade balance still depends on import demand, commodity prices and the ability to sustain shipments across markets.

Key number	September / FY27 update
Merchandise exports	$44.40bn in September; +23.04% YoY
First-half merchandise exports	$259.89bn; +18.51% YoY
September merchandise deficit	$30.21bn; down YoY, up from August
Engineering exports	$70.87bn in Apr-Sep; EEPC sees $150bn for FY27

Sources and data notes

·       Ministry of Commerce and Industry / PIB — Provisional September 2026 trade data, product-category growth and estimates note.

·       Business Standard / Department of Commerce reporting — September deficit comparison, including August 2026.

·       Business Standard / PTI — EEPC India chairman’s FY2026–27 engineering export forecast and April–September figure.

·       PIB engineering export background — Official FY2025–26 engineering export record.

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