India’s trade deficit widens to 11-month high of $32.15 bn in September

India’s merchandise trade deficit widened to an 11-month high of $32.15 billion in September, data showed on Wednesday, as imports surged faster than exports after President Donald Trump’s doubling of tariffs to 50% on several Indian goods in late August.

Economists had expected the September trade deficit to be $25.13 billion, according to a Reuters poll.

September exports rose to $36.38 billion from $35.10 billion in August, even with US tariff hikes hitting shipments of Indian goods such as textiles, shrimp, and gems & jewellery, Commerce Ministry data released on Wednesday showed.
Total goods imports rose to $68.53 billion in September from $61.59 billion in the previous month, according to the data released.

The data comes amid rising hopes from trade talks scheduled with Washington this week. India is promising to increase U.S. energy imports while aiming to address concern over its Russian oil purchases.

The first six months of the fiscal year starting April saw goods exports to the U.S., India’s largest trading partner, rise over 13% to $45.82 billion from $40.42 billion a year earlier, while imports from the U.S. climbed to $25.59 billion from $23.47 billion a year ago, the data showed.

The government estimated services exports in September at $30.82 billion and imports at $15.29 billion, suggesting a total goods and services trade surplus at $15.53 billion.