Trade deficit virtually doubles in September as companies exports shrink

reveals that for the primary half of the monetary yr (April to September 2025), the commerce deficit shrank by 2.3%.

Data launched by the Ministry of Commerce and Industry on Wednesday confirmed that India’s whole exports stood at $67.2 billion in September 2025, up 0.8% over September 2024. Total imports, then again, grew 11.3% to $83.8 billion over the identical interval. 

As a outcome, the commerce deficit in September almost doubled to $16.6 billion, in comparison with $8.6 billion in September 2024.

Goods exports develop regardless of tariffs

Notably, the comparatively poor efficiency of the export sector was as a result of decrease exports of companies and never items. India’s items exports grew 6.7% to $36.4 billion in September 2025 regardless of that being the primary full month of fifty% tariffs imposed by the U.S. on imports from India. 

Services, which have thus far bolstered India’s export efficiency, noticed exports shrinking 5.5% in September 2025 to $30.8 billion.

“It is heartening to know that on this turbulence, our merchandise exports have saved up,” Commerce Secretary Rajesh Agrawal mentioned in a press briefing. “That means our trade has been resilient and so they have been in a position to face up to the turbulence by retaining their provide chains and enterprise. They is likely to be taking up a few of the prices on themselves.”

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However, whereas the info reveals that India’s exports to the U.S. are certainly 13.4% increased within the cumulative April-September 2025 interval than in the identical interval final yr, they’ve been declining steadily over the previous couple of months. That is, the place India’s exports to the U.S. stood at $8.8 billion in May 2025, they have been valued at $5.5 billion in September 2025.

Mr. Agrawal additionally sought to downplay the rise within the commerce deficit in September, saying that worldwide commerce doesn’t all the time observe the identical sample from yr to yr. 

“On a cumulative foundation, we’re nonetheless doing higher than final yr,” he mentioned. “That means the a part of the exports that aren’t dealing with tariffs are rising effectively, but additionally the a part of the exports that do face the tariffs are additionally rising. The exports haven’t come down.”

Looking on the first half of the monetary yr, the info reveals that whole exports grew 4.45% within the April-September 2025 interval to $413.3 billion. Total imports grew at a comparatively slower 3.55% to $472.8 billion over the identical interval. As a outcome, the commerce deficit through the first half of the monetary yr shrank by 2.3%.