India’s merchandise trade deficit widened to $32.15 billion in September, up from $26.49 billion in August, according to provisional data released by the commerce ministry on Wednesday. This marks the highest deficit since November 2024.
During the month, exports rose slightly to $36.38 billion from $35.10 billion in August, while imports increased more sharply to $68.53 billion from $61.59 billion. A year earlier, in September 2024, exports were $34.58 billion and imports $55.36 billion.
The increase in exports came despite the impact of US tariffs, which took effect in late August. September was the first month to fully reflect the influence of these trade barriers. In August, US President Donald Trump imposed an additional 25% tariff on Indian goods—citing India’s trade ties with Russia—raising total duties on Indian exports to 50%. The move, effective from August 27, is expected to hit nearly half of India’s exports to the US, especially in labour-intensive sectors such as textiles, leather, gems, and jewellery, which together contribute about 2% to India’s GDP.
