India’s merchandise exports registered a 6.75 per cent increase in September to $36.38 billion compared to the same month last year, according to data released by the Commerce Ministry on Wednesday. The growth came despite the imposition of punitive tariffs by the United States.
Exports also showed an improvement on a month-on-month basis, rising from $35.1 billion in August. Commerce Secretary Rajesh Agarwal said that despite global trade disruptions, India’s overall export performance for the first half of FY26 remained robust, recording $18 billion higher than last year’s level.
“Non-petroleum exports reached $189.49 billion during the first six months of FY26 — the highest ever for the period,” Agarwal said, noting that global supply chain issues and restricted market access had created a challenging trade environment.
Imports Surge Ahead of Festive Season
While exports grew, imports saw a sharper increase, driven by higher festive season demand and rising prices of key commodities. Total goods imports jumped to $68.53 billion in September from $61.59 billion in August.
Agarwal highlighted that gold, silver, fertilisers, and electronics were among the main contributors to the import surge. “Fertiliser imports have been higher this year so far due to stronger demand,” he added.
The Commerce Ministry also estimated India’s services exports for September at $30.82 billion and imports at $15.29 billion, resulting in a total goods and services trade surplus of $15.53 billion.
India-US Trade Talks Progressing
Meanwhile, India and the United States are advancing discussions on concluding the first tranche of the proposed Bilateral Trade Agreement (BTA). A team of Indian negotiators is set to travel to Washington this week to continue talks aimed at resolving outstanding trade issues, government sources said.
“Engagement between the two sides is going on. The Ambassador-designate was in India and met with all stakeholders. A negotiating team from India is in the US. They are trying to see if we can have a win-win solution between the two sides. Discussion is on the table, and we are in deeper discussion,” government sources told ANI.
The sources added that India’s exports to the US have continued to expand, with around 45 per cent of them remaining outside the ambit of tariffs.
New US Ambassador Strengthens Bilateral Ties
The trade developments coincide with the arrival of new US Ambassador Sergio Gor, who recently took charge at the embassy in New Delhi. Gor met Prime Minister Narendra Modi last week to discuss a range of bilateral issues, including trade, defence cooperation, and technology.
“The US values its relationship with India, and under the strong leadership of President Donald J. Trump and Prime Minister Modi, I am optimistic about the days ahead for both of our nations. President Trump considers Prime Minister Modi a great and personal friend,” Gor said, adding that the two leaders recently had an “incredible phone call” and remain in regular contact.
The two sides also discussed the growing importance of critical minerals and the need for stronger cooperation to secure resilient supply chains.
