India's September merchandise trade deficit widens to $30.21 billion

NEW DELHI: India’s merchandise trade deficit widened to $30.21 billion in September from $26.86 billion in the previous month as imports grew faster than exports, government data on Thursday showed.

Economists had expected the merchandise trade deficit to amount to $30.4 billion, according to a Reuters poll.

Merchandise exports rose to $44.40 ​billion in September from $43.81 billion in the previous month, government data showed, while imports increased to $74.61 billion against $70.67 billion in August.

The higher goods deficit coincided with an intensifying US-Iran conflict that has exacerbated oil supply disruptions, adding to inflation risks in India, the world’s third-largest oil importer and Asia’s third-largest economy.

Brent crude futures have stayed above $100 a barrel amid the Iran war. Attacks around the Strait of Hormuz have surged over the past 10 days, with Iran saying it is stepping up strikes in response to the US blockade of its ports and tougher sanctions introduced last month.

India’s central bank earlier this month raised interest rates to counter inflation pressures and has announced a series of measures since then to support the rupee.

India’s August goods trade deficit narrows as gold imports plunge

Export growth was broad-based in September, reflecting “India’s strength across sectors including petroleum products, meat, dairy, poultry, electronic goods, handicrafts, and engineering goods,” Rajesh Agrawal, trade secretary, told reporters at a briefing on the trade figures.

India is seeking to diversify its export markets, with a trade deal with New Zealand set to take effect next week and its pact with Britain already in force, while a broader agreement with the European Union is moving towards implementation.

Export growth in automobiles and resilient services shipments provided some support to India’s overall export performance.

India’s automobile exports rose 22.5% year-on-year to 684,481 vehicles in September 2026, led primarily by a 26.8% jump in two-wheeler shipments to 544,797 units, separate data released by the Society of Indian Automobile Manufacturers (SIAM) showed on Thursday. Passenger vehicle exports, however, fell 2.2%.

Services exports stood at $36.35 billion, and imports at $19.44 billion, trade ministry estimates showed.

Gold imports fell to $1.8 billion from $2.3 billion in August, when imports had rebounded sharply on inventory restocking ahead of the festive season, data showed.

Gold imports in the first six months of the fiscal year 2026/27 fell 27.32% year-on-year to $19.27 billion, data showed.

The US remained the top destination for Indian exports, with goods shipments rising to $50.81 billion in April-September from $45.82 billion a year earlier.