Amid the Impact of US tariffs that came into effect in the month of August, India’s merchandise trade deficit expanded all-time high 13 months to $ 32.15 billion in September. Not only this, a drop petroleum exports and sudden rise in the gold and silver imports. In addition, Department of Commerce warned that the impact of the US tariffs will be even significant in the coming month.
Moreover, Rajesh Agarwal, Commerce Secretary said: “Definitely, the impact will be there on the industry. So how much of this sector I think we need to wait for a very commodity level data for the month of September before arriving at any kind of choice. October (the impact) will be more firm”
The commerce ministry data stated that Indian exports to the US dropped by more than 20% to $5.43 billion in September from $6.87 billion in August along with US tariffs affecting the items shipments such as carpets, textiles, and shrimp and gems and jewellery. But total Indian exports to the US between April and September 2025 increased by more than 13% as compared to the same period in last year. Notably, the aggregate value of Indian exports to the US was $ 45.82 billion this year, whereas it was $40.42 billion in 2024.
Cumulatively, data released on Wednesday, October 16, have shown the trade deficit of Indiaexpanded to an estimated $16.61 billion in September, in comparison with $9.88 billion in August. Total Indian exports, including merchandise and services, were $67.20 billion, slightly up from $63.25 billion in August, whereas imports rose to $83.82 billion from $79.04 billion in August. Additionally, the total exports and imports stood at $66.68 billion and $ 75.28 billion respectively in September 2024.
