India trade deficit widens the most in at least a year as US tariff impact shows
India trade deficit in September: While exports rose 6.7% YoY to $36.38 billion, imports rose 16.7% YoY to $68.53 billion due to higher gold and silver imports.
India’s trade deficit in September widened the most in at least a year as 50% US tariffs took effect in the world's fourth largest economy.
The gap between exports and imports stood at $32.15 billion in September 2025, as against $26.49 billion in the previous month, data released by the Ministry of Commerce and Industry showed on Wednesday. That compares with a $27.5 billion gap projected by economists in a Bloomberg survey.
Exports rose 6.7% in September to $36.38 billion from a year earlier, while imports climbed 16.7% to $68.53 billion.
Gold imports rose to $9.6 billion last month, compared to $5.4 billion in August, while oil imports stood at $14 billion in September, up from $13.2 billion the previous month.
A widening trade deficit will weigh on the rupee, which had neared 89/dollar levels before surging on Wednesday after the Reserve Bank of India went on the offensive after weeks of defending the currency.
US tariffs on India
The US imposed 50% tariff on Indian goods from 27 August 2025 to penalise New Delhi for its trade barriers and Russian oil imports. Indian exporters had front-loaded shipments to the US in July and August to avoid the duties, but the levies now threaten to make labour-intensive exports uncompetitive against rivals such as Vietnam and Bangladesh.
Nearly 55% of Indian exports to the US were affected by 50% US tariff, India's Trade Secretary Rajesh Agrawal was quoted as saying by Reuters.
“Despite turbulence in global market, exports have maintained momentum,” he said, “but the imports have grown at faster pace in September, driven by increase in gold, silver, fertilisers and electronics.”
The US is India’s biggest export destination, accounting for almost a fifth of the nation’s total exports.
India-US trade deal
India is fast-tracking trade talks with the US with the goal of concluding deal negotiations by next month, Bloomberg reported on Tuesday, even as Russian oil imports remain a sticking point.
New Delhi is working on a plan that would be mutually acceptable to address the issue, the people said, asking not to be identified as the matter is still private. They however did not share other details. Most of the other trade issues between the two nations have been resolved, they said.
“An Indian delegation is in the US this week to advance trade talks amid the government shutdown,” Agrawal said on Wednesday.
India's government officials are cautiously optimistic about the renewed momentum in talks and believe that, at the current pace, negotiations could be wrapped up by November, the people said. The US and India had earlier agreed to finalise a bilateral deal by the fall.
