Country's exports rose from $36.08 billion to $44.4 billion in September 2025, government data released Thursday said. However, deficit widened when compared to $26.86 billion recorded during August 2026. Exports of petroleum products, electronic goods and chemicals grew by 31.9% ($6.2 billion), 70.44% ($5.3 billion) and 24.21% ($3 billion) respectively.
High crude oil prices amid West Asia crisis have helped India earn better realisations from petroleum product exports. Imports rose by 8% year-on-year to $74.61 billion in September. Gold and silver imports declined by 81.27% and 49.11% respectively to $1.8 billion and $665 million during month. Inbound shipments of crude oil rose by 30.76% to $18.34 billion.
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Brent crude oil prices have been hovering over $100 per barrel during last few weeks. Cumulatively, April-September fiscal, exports jumped 18.51% to $259.89 billion, imports climbed 16.31% to $437.53 billion. Deficit during first half of 2026-27 widened to $177.64 billion compared to $156.88 billion during April-September 2025-26.
Exports are maintaining their growth trend, Commerce Secretary Rajesh Agarwal said in press briefing. He expressed hope that if trend continued, country's merchandise exports would cross $500 billion. They were at $442 billion in 2025-26.
Why does it matter? This is first export data after US imposed 50% tariffs on India in August, including 25% penal tariff for Russian oil purchase. Despite that, electronics exports to US jumped 89% to $5.5 billion in April-August, as US exempted phones and chips from reciprocal tariffs. Petroleum exports to Europe filled gap left by Russian diesel sanctions.
Analytically, India is benefiting from two wars - Russia-Ukraine keeping crude product margins high, Israel-Iran keeping oil prices high. But sustainability is question: if crude falls, export growth falls. Real competitiveness in textiles and engineering, which face US tariffs, still weak - US buyers placing smaller tranches.
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For rupee, which touched 96.96 per dollar in May and still hovers near low, export jump is relief but import of crude wipes gains. RBI's 25 bps hike to 5.5% on October 7 failed to strengthen rupee as FII outflow continued - Rs 45,000 crore sold since September.
If India closes interim trade deal with US, tariffs may ease. If not, electronics may carry exports alone.
Tags: #Exports #TradeDeficit #MerchandiseExports #Petroleum #Electronics #Rupee #CommerceMinistry #USEconomy #CrudeOil