India’s Merchandise Exports Rise 6.75% in September Despite US Tariff Hikes

New Delhi — India’s merchandise exports grew 6.75 per cent in September to $36.38 billion compared to the same month last year, despite the impact of higher tariffs imposed by the United States, according to Commerce Ministry data released Wednesday.

Exports were also higher month-on-month, up from $35.1 billion in August. Commerce Secretary Rajesh Agarwal said, “This has been a turbulent year for trade given developments across the world pertaining to supply chains and market access. But despite the turbulence during the first six months of FY26, total exports are higher than last year, with $18 billion more than last year. Non-petroleum exports reached $189.49 billion during the first six months of FY26, highest ever for the period.”

However, imports grew at a faster pace than exports, driven by festive season demand. “Import increase in September 2025 has been higher than exports. Gold, silver, fertiliser, and electronics have led the import surge. Fertiliser imports have been higher this year so far due to better demand,” Agarwal noted. Total goods imports rose to $68.53 billion in September from $61.59 billion in August.

India’s services exports for September were estimated at $30.82 billion, with imports at $15.29 billion, resulting in a total goods and services trade surplus of $15.53 billion.

In parallel, India and the US are making progress in negotiations for the first tranche of the proposed Bilateral Trade Agreement (BTA). A team of Indian officials is scheduled to visit Washington this week for further discussions. A government official said, “Discussions between the two countries are progressing well.”

India has proposed increasing imports of oil and gas from the US, which would help offset its trade surplus and diversify energy sources amid geopolitical uncertainties. Additionally, India is likely to source more renewable energy technologies from the US, supporting its climate change goals.

The developments follow the recent arrival of new US Ambassador Sergio Gor in New Delhi. Gor met Prime Minister Narendra Modi last week to discuss bilateral issues including defence, trade, and technology, as well as the strategic importance of critical minerals. Gor said, “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. Just before I left for New Delhi, they had an incredible phone call, and that dialogue will continue in the weeks and months ahead.”

With inputs from IANS