India's Steady Export Growth in September and H1 FY26 Reflects Strong Resilience and Global Competitiveness: S C Ralhan, President, FIEO

New Delhi, October 15, 2025: The Federation of Indian Export Organisations (FIEO) has lauded the continued growth in India’s merchandise and overall exports for September 2025 and the first half of the financial year 2025–26, calling it a testament to the resilience, adaptability, and competitiveness of Indian exporters in navigating a challenging global landscape. Despite persistent geopolitical tensions, elevated interest rates, and sluggish demand across major economies, India’s export sector has shown remarkable strength and consistency. According to official trade data, merchandise exports in September 2025 rose by 6.74% to USD 36.38 billion from USD 34.08 billion in the same month last year, highlighting the determination and resourcefulness of Indian businesses, said S C Ralhan, President, FIEO.
 
While merchandise imports increased sharply by 16.6% to USD 68.53 billion, leading to a trade deficit of USD 32.1 billion for the month, this surge also reflects strong domestic demand and buoyant manufacturing activity, driven in part by elevated commodity prices and rising input costs. Overall exports, including both goods and services, reached USD 67.20 billion in September 2025, up slightly from USD 66.68 billion in September 2024, whereas overall imports climbed to USD 83.82 billion from USD 75.28 billion. This resulted in a total trade deficit of USD 16.61 billion for the month. FIEO noted that while the trade gap remains a concern, the resilience of the services sector continues to offer balance and stability.
 
For the April–September 2025 period, cumulative merchandise exports registered a growth of 3.02%, reaching USD 220.12 billion, while merchandise imports rose by 4.53% to USD 375.11 billion. Overall exports (goods and services combined) during the same period increased by 4.45% to USD 395.71 billion, while total imports grew by 3.55% to USD 472.79 billion. Significantly, the overall trade deficit narrowed by 2.28% to USD 59.48 billion, a positive development that reflects the continued strength of India’s service exports and improving trade dynamics.
 
FIEO President, S C Ralhan emphasized that the consistent growth in exports, despite formidable global headwinds, underscores the commendable efforts of Indian exporters and their growing competitiveness on the world stage. At the same time, the increase in imports calls for a renewed focus on building domestic manufacturing capabilities in critical sectors such as electronics, machinery, and intermediate goods. Mr Ralhan urged the government to take bold steps toward import substitution by encouraging local production and enhancing global competitiveness through innovation and scale.
 
He added that while the United States continues to be India’s largest export destination, followed by the UAE, Netherlands, China, the UK, and Germany, there is substantial untapped potential in regions such as Latin America, Africa, and ASEAN. With well-targeted export promotion strategies and market diversification efforts, India can deepen its global footprint and reduce overdependence on a few markets.
 
To ensure continued momentum, FIEO called for enhanced policy support to address key concerns faced by exporters. Ralhan stressed the urgent need for greater availability of export credit at competitive rates, particularly for MSMEs, which form the backbone of India’s export sector. Reducing logistics and compliance costs through modern infrastructure, simplified processes, and quicker refund mechanisms would significantly enhance exporter confidence. He also advocated for supporting high-value sectors like electronics, green technology, and processed food, which offer immense potential for long-term value creation and job generation. Labour-intensive sectors, which are bearing the brunt of high tariffs from markets like the US, also require strategic support to stay globally competitive.
 
FIEO strongly recommends fast-tracking of the ongoing Free Trade Agreements (FTAs) with the European Union, United Kingdom, Latin American countries, and the GCC to enhance market access, reduce trade barriers, and strengthen India’s position in global supply chains. Ralhan reaffirmed FIEO’s commitment to working hand in hand with the government and industry stakeholders to unlock new markets, leverage shifts in global supply chains, and realize the nation’s ambitious export targets. He concluded by expressing confidence that with the right mix of policy support, innovation, and global engagement, India is well on its way to becoming a leading force in international trade.