Govt Says Exports Grew 6.7% Yearly and 3.6% Monthly in Tariff-Hit Sept

Chennai: Despite a full month of 50 per cent US tariffs, quite intriguingly, India’s merchandise exports grew both yearly as well as sequentially in September. As per the government data, merchandise exports grew 6.75 per cent on a y-o-y basis and 3.64 per cent on a m-o-m basis. The exports to the US were down by just 11.9 per cent.

Merchandise exports in September rose 6.75 per cent to $36.38 billion against $34.08 billion in the same month last year. September exports rose 3.64 per cent against $35.10 billion in August, even when US tariff hikes remained detrimental to goods such as textiles, shrimp, and gems and jewellery. The reciprocal tariffs of 25 per cent came into effect in the first week of August and the penalty tariffs in the last week of August. September is the first full month with 50 per cent tariffs to the US.

Further, exports to the US fell just 11.9 per cent to $5.4 billion from $6.2 billion in September last year and 17.9 per cent against $6.87 billion in August.

“I am pleasantly surprised that our exports have gone up despite our largest market - the US- registering a decline of 11.9 per cent. We will have to go deeper into the data to see which regions, which sectors and which products have done well,” said Pankaj Chadha, chairman, EEPC.

As per the Commerce Ministry data, gems and jewellery exports recorded 0.4 per cent growth in September. However, GJEPC data states a growth of 6.55 per cent in the month. Cut and polished diamonds, which are mainly exported to the US, were up by 5.91 per cent.

Despite shrimp exports being hit by tariffs, marine products exports surged 23.44 per cent, as per the ministry data. Apparels, a major category exported to the US, registered a decline of 10.14 per cent and made-ups a dip of 2.34 per cent. In made-ups, the US is the largest consumer of home textiles.

When asked about the impact of the 50 per cent US tariff, Commerce Secretary Rajesh Agrawal said that the ministry is looking into commodity-wise data to assess the impact.

Imports too surged faster in September despite the trade uncertainties and tariff restrictions. Imports at $68.53 billion were 16.7 per cent higher than the same month last year. Goods imports rose 11 per cent in September against $61.59 billion in August as gold imports surged to $9.6 billion from $4.6 billion in September 2024 and $5.14 billion in the previous month. Silver, fertilizer and project goods imports also surged in September.

This led to merchandise trade deficit widening to a 13-month high of $32.15 billion in September against $26.49 billion in the previous month

As per government estimates, services exports in September stood at $30.82 billion and imports at $15.29 billion, leading to a surplus of $15.53 billion.