India’s Trade Deficit Widens to $30.21 Billion in September

New Delhi, Oct 15 (KNN) India’s merchandise trade deficit widened to USD 30.21 billion in September from USD 26.86 billion in August, as imports rose faster than exports in absolute terms, according to data released by the Department of Commerce.

However, the deficit narrowed from around USD 33 billion recorded in September 2025.

Merchandise exports increased 23 per cent year-on-year to USD 44.40 billion in September, the highest in four months. Commerce Secretary Rajesh Agrawal attributed the growth to higher shipments across sectors, particularly petroleum products, meat, dairy and poultry products, handicrafts and some cereals, business standard reported.

Merchandise imports rose nearly 11 per cent year-on-year to USD 74.61 billion during the month.

During April-September 2026-27, merchandise exports increased nearly 19 per cent year-on-year to USD 259.89 billion, while imports rose 16 per cent to USD 437.53 billion. The merchandise trade deficit for the six-month period stood at USD 177.64 billion.

Exports accounted for 14 per cent of India’s gross domestic product (GDP) in the first quarter of FY27, according to the latest available data. 

The share had declined to 11.3 per cent in FY26 from 11.7 per cent in FY25 and 12.5 per cent in FY24, amid a slowdown in global demand and higher US tariffs on Indian goods.

The export share in GDP in the first quarter of FY27 returned to the level recorded in FY23, when annual merchandise exports reached a record high.

(KNN Bureau)