India’s merchandise exports increased by 23.04% year-on-year to $44.40 billion in September 2026, supported by strong performance in engineering goods, electronics, chemicals and petroleum products. The monthly merchandise trade deficit narrowed to $30.21 billion from $33 billion a year earlier, according to provisional trade estimates released by the Commerce Department.
Imports grew by 8% to $74.61 billion during the month. However, the improvement in September’s trade balance did not extend to the first half of the financial year. Between April and September 2026, India’s merchandise trade deficit widened to $177.64 billion, compared with $156.88 billion in the corresponding period of the previous financial year.
The latest figures highlight the strength of India’s export momentum, while also drawing attention to import demand, international trade costs and the need to sustain export growth across global markets.
Key Highlights
- Merchandise exports: Rose 23.04% year-on-year to $44.40 billion in September 2026.
- Merchandise imports: Increased 8% to $74.61 billion.
- Monthly trade deficit: Narrowed to $30.21 billion from $33 billion in September 2025.
- First-half exports: Increased 18.51% to $259.89 billion during April–September 2026.
- First-half imports: Rose 16.31% to $437.53 billion.
- Six-month trade deficit: Widened to $177.64 billion from $156.88 billion a year earlier.
- Leading export sectors: Engineering goods, electronics, chemicals and petroleum products.
- Notable import movements: Gold and silver imports fell sharply, while crude oil imports increased.
India’s Merchandise Trade Performance: September 2026
Trade indicator
September 2026
Year-on-year change
Merchandise exports
$44.40 billion
+23.04%
Merchandise imports
$74.61 billion
+8.00%
Merchandise trade deficit
$30.21 billion
Narrowed from $33 billion
The figures show that exports grew faster than imports in September. This helped reduce the monthly trade deficit compared with the same month last year, although the deficit increased from $26.86 billion in August 2026.
Engineering Goods, Electronics and Chemicals Support Export Growth
India’s export performance in September was driven by demand for engineering goods, electronics, chemicals and petroleum products.
These sectors are important to India’s international trade because they connect domestic manufacturers with global supply chains. Their export performance also influences demand for cargo transportation, customs clearance, warehousing, freight forwarding and shipment documentation.
Commerce Secretary Rajesh Agrawal said export growth had continued and that goods exports performed more strongly in the second quarter than in the first quarter of the financial year.
Maintaining this momentum will depend on exporters securing repeat orders, reaching new markets and managing the costs associated with international shipments.
Gold and Silver Imports Fall Sharply as Crude Oil Imports Rise
India recorded substantial changes in commodity imports during September 2026. Gold and silver imports declined sharply, while crude oil imports increased.
Commodity
September 2026 import value
Year-on-year change
Gold
$1.80 billion
-81.27%
Silver
$665 million
-49.11%
Crude oil
$18.34 billion
+30.76%
Coal and coke
Not specified
Increased
Chemicals
Not specified
Increased
Electronics
Not specified
Increased
Machinery
Not specified
Increased
Dyeing materials
Not specified
Increased
The decline in precious-metal imports helped shape the monthly import bill. In contrast, higher crude oil imports increased spending on a major industrial and energy commodity.
The rise in crude oil imports is particularly relevant to international logistics because oil shipments involve tanker capacity, port handling, storage infrastructure and associated inland transportation. Changes in commodity trade can also influence shipping demand and the allocation of logistics resources.
The available figures do not establish how much of the overall trade-deficit improvement came from each commodity. However, they demonstrate how changes in individual import categories can influence India’s monthly trade balance.
Which Countries Drove India’s Export and Import Flows?
India’s export growth was supported by demand from several markets in North America, Asia, Africa and Europe. At the same time, export performance varied across destinations.
Markets supporting export growth
The markets identified in the September trade data as supporting export shipments included:
- United States
- China
- Singapore
- South Africa
- Malaysia
- Other markets across Europe and Asia
Exports to the United Arab Emirates, the Netherlands, Australia, Saudi Arabia, Bangladesh and Sri Lanka declined.
Major sources of imports
India recorded increased imports from China, Russia, Oman, South Korea and Hong Kong. Imports from the United States also increased moderately.
Imports declined from Saudi Arabia, Japan and Switzerland.
These movements demonstrate the importance of tracking trade flows by country and commodity. Changes in export demand and import sourcing can affect shipping routes, cargo volumes, customs requirements and freight capacity planning.
The available figures identify the direction of these market movements but do not provide country-wise shipment volumes or percentage changes.
April–September 2026: Trade Deficit Widens Despite Export Growth
India’s cumulative merchandise trade figures show that the country maintained strong export growth during the first six months of FY 2026–27. However, imports increased substantially in absolute terms, widening the overall trade deficit.
Indicator
April–September 2025
April–September 2026
Growth
Exports
$219.28 billion*
$259.89 billion
18.51%
Imports
$376.16 billion*
$437.53 billion
16.31%
Trade deficit
$156.88 billion
$177.64 billion
13.23%
*Previous-period export and import values are approximate calculations based on the reported current-period values and growth rates.
The wider six-month deficit highlights an important distinction: a narrower monthly deficit does not necessarily indicate an improvement in the cumulative trade balance.
India will need to maintain export growth while managing import costs and strengthening the competitiveness of domestic manufacturing and export-oriented industries.
What the Latest Trade Data Means for India’s Logistics Industry
The growth in merchandise exports creates opportunities across the logistics ecosystem, although actual demand will depend on cargo volumes, commodity mix, trade routes and shipping arrangements.
1. Freight forwarding and international shipping
Higher exports of engineering goods, electronics and chemicals can create additional requirements for sea freight, air cargo, export coordination and international transportation. The effect will vary according to the size, weight, value and handling requirements of individual shipments.
2. Customs clearance and export documentation
Exporters must coordinate commercial invoices, packing lists, shipping bills and other applicable documents. As shipment volumes increase, accurate data capture and timely document verification become more important for avoiding preventable delays.
3. Port handling and container movement
Changes in export and import flows can influence demand for container handling, cargo storage, inland transportation and port-linked services. However, national trade values alone cannot establish whether individual Indian ports experienced higher container throughput in September.
4. Air cargo and high-value shipments
Electronics and certain engineering products may require time-sensitive transportation, secure handling and shipment visibility. The actual shift toward air freight will depend on product specifications, delivery commitments and transportation costs.
5. Logistics cost management
Exporters have called for competitive export finance, predictable trade and logistics costs, continued policy support and greater market diversification. These factors can influence the ability of Indian businesses to compete for international orders.
For freight forwarders, the opportunity is to help exporters coordinate documentation, transportation, shipment visibility and cost management while meeting the requirements of different destination markets.
Exporters Call for Continued Policy Support
Despite the strong September performance, exporters have highlighted the importance of maintaining a supportive trade environment amid geopolitical uncertainty.
Federation of Indian Export Organisations (FIEO) chief S. C. Ralhan emphasised the need to convert export momentum into sustained orders and deeper market penetration. He also highlighted the importance of expanding high-value and technology-intensive exports, building on established industries and strengthening India’s participation in global value chains.
For exporters and logistics providers, these priorities make market diversification, predictable operating costs and efficient shipment execution important considerations.
Key Takeaways
- India’s merchandise exports recorded strong year-on-year growth in September 2026, reaching $44.40 billion.
- The monthly merchandise trade deficit narrowed to $30.21 billion, partly alongside slower import growth and a sharp decline in gold and silver imports.
- Engineering goods, electronics, chemicals and petroleum products were among the key export growth drivers.
- The April–September merchandise trade deficit widened to $177.64 billion, despite double-digit growth in exports.
- Exporters’ competitiveness will depend on market access, financing, efficient logistics and the ability to manage international trade costs.
- Freight forwarders and logistics service providers should monitor sector-wise demand and route-level developments rather than relying on national export values alone.
Frequently Asked Questions
How much did India’s exports grow in September 2026?
India’s merchandise exports rose 23.04% year-on-year to $44.40 billion in September 2026.
What was India’s trade deficit in September 2026?
India recorded a merchandise trade deficit of $30.21 billion in September 2026, compared with $33 billion in September 2025.
Which sectors drove India’s export growth?
Engineering goods, electronics, chemicals and petroleum products were among the leading contributors to export growth.
Why did India’s trade deficit narrow in September?
The monthly deficit narrowed as exports increased strongly while imports grew at a slower rate. A sharp decline in gold and silver imports was another notable development in the monthly import mix.
What was India’s trade deficit during April–September 2026?
India’s merchandise trade deficit widened to $177.64 billion during April–September 2026, compared with $156.88 billion in the same period of the previous financial year.
How can export growth affect freight forwarding companies?
Higher export activity can increase demand for international transportation, customs clearance, export documentation, cargo handling and shipment tracking. The actual impact depends on the goods being shipped and the routes involved.
What should logistics companies monitor following the latest trade figures?
Logistics companies should track commodity-wise export demand, destination-market trends, freight rates, shipping capacity, port congestion, customs requirements and changes in trade policy.
