India's September goods exports rise 23% as imports hit six-month low, narrowing trade deficit

India's September goods exports surged by 23% to $44.4 billion compared to the previous year, with a notable boost in electronic goods, petroleum products, engineering goods, and yarn and fabrics, according to official data released Thursday. This growth contrasted sharply with a six-month low in import growth, which plummeted to 8% as gold shipments contracted significantly, accounting for an 81.27% year-on-year decline. Consequently, the trade deficit narrowed to $30.21 billion from $33 billion in August.

Commerce Secretary Rajesh Agarwal attributed the robust export performance to a consistent growth trend, with exports expanding 15.84% in the July-September period, compared to 11.84% in the first quarter of the current fiscal year. He expressed optimism, stating that if this upward trajectory persists, India's total exports for the year could surpass $500 billion.

The Federation of Indian Export Organisations President, SC Ralhan, hailed the export growth as a testament to India's competitiveness in the global trading landscape, emphasizing the resilience of local exporters amidst tariff uncertainties, geopolitical tensions, and logistical hurdles.

Key export destinations included the US, UAE, China, Singapore, the UK, and Germany. In terms of imports, China, Russia, the US, UAE, and South Korea emerged as the primary sources. Notably, outbound shipments of engineering goods grew by 21%, while those of electronics and petroleum products witnessed impressive double-digit increases of 70.5% and 72%, respectively, highlighting the sector's resilience to external shocks.

The trade deficit was higher than the $26.86 billion gap observed in August, but the September figures marked a positive shift. Despite global trade facing disruptions since the Russia-Ukraine conflict and the ongoing West Asia war, India's exports to the Gulf remained relatively stable at $5.56 billion, slightly lower than the $5.94 billion recorded in the same period a year earlier.

India's largest trading partner remained China, with bilateral trade rising by 29% to $91.76 billion in the first half of the fiscal year, with exports of $11.41 billion and imports of $80.34 billion.