India’s trade deficit widened to $30.21 billion in September 2026, driven by an 8% increase in overall imports to $74.61 billion, even as merchandise exports jumped 23% year-on-year to reach a four-month high of $44.40 billion. The export surge was spearheaded by strong demand for petroleum products, engineering goods, electronics, and agricultural commodities, with cumulative April-September exports reaching $476.20 billion across merchandise and services. On the trade policy front, Commerce and Industry Minister Piyush Goyal announced that the first phase of the India-US trade deal has been finalized and is undergoing legal drafting, while the landmark India-EU Free Trade Agreement is scheduled to be signed by December and implemented by early 2027. The United States retained its position as India’s top export destination, registering nearly 48% growth in September, while China remained the largest source of imports. Despite widening import values, overall trade figures highlight strong international demand for Indian manufactured goods and petroleum derivatives.