India’s Merchandise Exports Rise 23% as First-Half Earnings Reach $259.89 Billion

Summary

India’s merchandise exports increased 23% year on year to $44.40 billion in September 2026, taking first-half shipments to $259.89 billion. FIEO welcomed the expansion across manufacturing and agricultural sectors, while calling for wider market diversification. The monthly goods trade deficit narrowed from a year earlier, although the cumulative gap remained larger.

First-half exports add more than $40 billion

India’s merchandise exports reached $259.89 billion during April–September 2026, up 18.51% from $219.30 billion in the corresponding period last year.

The increase represents an additional $40.59 billion in overseas earnings during the first six months of the financial year. September’s performance strengthened that expansion, with electronics, engineering, petroleum products, chemicals and agricultural shipments contributing to the broader export momentum.

Responding to the figures on October 15, Federation of Indian Export Organisations President S C Ralhan said exporters had demonstrated resilience despite uncertain tariffs, geopolitical tensions and logistics difficulties.

He highlighted the contribution of both technology-intensive industries and established export sectors, while stressing the importance of maintaining that diversity during the second half.

September deficit narrows from a year earlier

Merchandise imports stood at $74.61 billion in September, increasing approximately 8% from $69.08 billion a year earlier. With export growth substantially faster, the monthly goods trade deficit declined to $30.21 billion from $33 billion.

The comparison with the preceding month presents a different picture. August’s merchandise deficit was $26.86 billion, meaning the gap widened sequentially in September.

The distinction matters when assessing the latest figures: stronger exports improved the balance against September last year, but did not prevent a larger deficit than in August.

Electronics supports growth beyond petroleum

Electronic goods exports rose 70.44% to $5.31 billion in September, compared with $3.11 billion a year earlier.

Across April–September, non-petroleum exports increased 15.56% to $218.70 billion. This indicates that the first-half expansion extended beyond refined petroleum shipments.

Nevertheless, the cumulative merchandise deficit widened to $177.64 billion from $156.88 billion. Imports reached $437.53 billion during the half-year, exceeding the increase in export earnings in absolute terms.

Export growth and the trade deficit therefore require separate assessment. Higher overseas sales can coexist with a widening gap when the additional import bill is larger.

August provided an earlier indication of momentum

September followed a strong August performance, when merchandise exports increased 26.12% year on year to $43.81 billion.

The August sectoral breakdown showed electronics exports rising 89.82% to $5.55 billion, while engineering shipments increased 24.86% to $12.32 billion. Petroleum product exports grew 63.27% to $6.81 billion.

Chemicals also contributed, with organic and inorganic chemical exports reaching $2.80 billion, up 16.38%. Cotton yarn, fabrics, made-ups and handloom products recorded growth of 13.79%.

These earlier results provide context for September’s expansion: several major sectors had already registered substantial gains before the financial year reached its halfway point.

However, September electronics earnings were below August’s level despite the strong annual increase, illustrating why year-on-year growth should be distinguished from monthly movements.

Services present a more mixed picture

Combined goods and services exports were estimated at $476.20 billion for April–September, an increase of 13.84%.

September services exports, however, were estimated at $36.35 billion, slightly below $36.67 billion a year earlier. The September services figures are provisional estimates, with the latest available RBI data covering August.

The combined export headline consequently reflects different trajectories across goods and services.

Market diversification remains a priority

Ralhan called for exporters to deepen established commercial relationships while pursuing additional destinations. FIEO’s assessment places market diversification alongside sectoral breadth as a priority for sustaining growth.

For ports, shipping lines and logistics providers, the figures offer a useful indication of export business activity. They do not, however, establish an equivalent increase in physical cargo or container demand.

Trade values can change because of prices, shipment quantities and product composition. Higher earnings from electronics, for example, cannot be translated directly into the same percentage increase in freight volumes.

The next test will be whether the first-half gains translate into sustained overseas orders, dependable shipment flows and broader market access through the remainder of 2026–27.

FAQs

How much did India export in September 2026?

Merchandise exports reached $44.40 billion, approximately 23% higher than a year earlier.

What were merchandise exports during April–September?

They totalled $259.89 billion, increasing 18.51% from $219.30 billion.

Did the merchandise trade deficit narrow?

September’s deficit narrowed year on year to $30.21 billion. However, it widened compared with August, and the cumulative first-half deficit also increased.

Which sectors supported export growth?

Electronics, engineering goods, petroleum products, chemicals and agriculture contributed to the expansion.

Does export value growth indicate equivalent cargo growth?

No. Export earnings reflect prices and product mix as well as quantities. Physical cargo growth requires separate volume data.