September’s trade shortfall hits $32.15 billion as imports beat exports, even with export growth holding steady.
India’s goods trade shortfall hit an 11-month high at $32.15 billion in September. Ministry of Commerce numbers released Wednesday show imports grew faster than exports. The gap widened after the U.S. doubled tariffs on some Indian goods to 50% in late August. Economists thought the deficit would be around $25.13 billion, according to a Reuters poll, but the actual number shows imports are growing fast.
India’s exports in September were $36.38 billion, a bit more than August’s $35.10 billion. This happened even with U.S. tariffs on important goods like textiles, shrimp, and jewelry. The slight export growth shows Indian exporters are tough, even with tough global trade and tariffs. Still, it wasn’t enough to make up for the big jump in imports, which went up to $68.53 billion from August’s $61.59 billion.
The import rise mostly came from more need for crude oil, electronics, and machines. This shows people in India are buying more, and global prices are high. Experts say the bigger trade gap means India still relies on imports, especially for energy and big equipment.
Commerce Ministry numbers also say that in the first half of the year (April to September), India’s goods exports to the U.S., its biggest trading partner, went up 13% to $45.82 billion from $40.42 billion last year. Imports from the U.S. also rose to $25.59 billion from $23.47 billion, showing the two countries trade a lot even with the tariffs.
Besides goods trade, India’s service industry helped balance things out. The government thinks service exports in September were $30.82 billion and service imports were $15.29 billion, making a $15.53 billion surplus. This surplus softened the blow of the big goods deficit on the current account.
This info comes before important trade talks between India and the U.S. later this week. They’ll likely talk about lowering tariffs and working together more on energy. India said it’s willing to buy more U.S. energy and fix worries about buying cheap Russian oil.
India’s trade shortfall jumped to $32.15 billion in September because of high import demand and problems with trade, like U.S. tariffs. Exports have been steady, but the imbalance shows problems with India’s trade setup. The coming talks with Washington will be key to changing trade and maybe easing some tariffs. Boosting different kinds of exports and relying less on imports will be important for a more stable trade balance in the future.
