India’s Export Engine Roars Back: Electronics Up 70%, September Shipments Hit $44.4 Billion

India’s merchandise exports recorded a strong rebound in September, rising 23 per cent year-on-year to $44.4 billion, as electronics and engineering goods powered overseas shipments and a sharp fall in gold imports helped narrow the trade deficit.

Imports increased at a slower pace of 8 per cent to $74.61 billion, bringing the merchandise trade deficit down to $30.21 billion, compared with around $33 billion in September last year. The improvement offers some relief on the external trade front, although the deficit remains substantial as India continues to rely on imported goods and raw materials.

Electronics emerged as a major growth driver, with exports jumping 70 per cent to $5.3 billion. The performance highlights the growing role of electronics manufacturing in India's export strategy, supported by efforts to expand domestic production and integrate Indian manufacturers more deeply into global supply chains.

Engineering goods also contributed to the momentum, with exports rising 21 per cent. The gains suggest that demand for Indian manufactured products continues to support shipments abroad, even as global trade faces uncertainty and businesses navigate changing market conditions.

On the import side, gold imports plunged by more than 81 per cent, helping moderate the overall import bill. However, the sharp decline in gold purchases may also reflect changing import demand during the month, rather than a broad-based reduction across all categories.

India’s export performance was also strong over the first half of the financial year. Merchandise exports rose 18.5 per cent to $259.89 billion, pointing to sustained momentum beyond September alone.

Services trade, however, presented a less encouraging picture, with the services export surplus reportedly declining 10 per cent. This underlines the need to assess merchandise and services performance together when evaluating the country's overall external position.

The latest figures come against a positive economic outlook, with the International Monetary Fund projecting 7 per cent growth for India in 2026.