India’s export performance has held firm despite uncertainty in global trade. SBI Research, in an assessment shared through ANI, reported that merchandise exports reached 220 billion dollars between April and September in FY26. This is a clear improvement from 214 billion dollars in the same period last year and shows that India’s exporters are holding their ground.
Rise in US Shipments but a Smaller Overall Share
Exports to the United States grew by 13 percent to 45 billion dollars during the six month period. However, shipments in September alone fell by almost 12 percent when compared with the previous year. The United States remains one of India’s most important markets, but its share in total exports has been slowly shrinking since mid 2025. In September the share stood at 15 percent. Sector trends show a mixed pattern. The US share of India’s marine products dropped from 20 percent in FY25 to 15 percent in September, and the share for precious stones fell sharply from 37 percent to 6 percent. Even so, marine products and ready made cotton garments still recorded growth in the April to September period.
Exports Spread Across More Countries
SBI Research noted that India’s export mix has become more geographically diverse. Countries such as the United Arab Emirates, China, Vietnam, Japan, Hong Kong, Bangladesh, Sri Lanka and Nigeria all took larger shares across several product categories. The report also suggested that some Indian goods may be reaching final destinations through indirect routes. For example, Australia’s share in United States imports of precious stones increased from 2 percent to 9 percent, while Hong Kong’s share moved up from 1 percent to 2 percent.
Trade Pressures From Higher US Tariffs
India continues to face pressure from the higher import tariffs introduced by the Trump administration. Textiles, jewellery and seafood have been among the most affected sectors, especially shrimp exporters. To help businesses cope, the Indian government has approved assistance worth 45060 crore rupees, including 20000 crore rupees in credit guarantees.
Rupee Faces Stress in Volatile Markets
The rupee weakened to 89.49 per dollar on Friday as global financial conditions turned more turbulent. The Reserve Bank of India repeated that it does not defend any specific exchange rate. Market analysts believe the recent decline is a temporary adjustment rather than a deeper shift.Current Account Deficit Narrows but May Expand Briefly
India’s current account deficit improved sharply to 0.2 percent of GDP in the first quarter of FY26, down from 0.9 percent a year earlier. This was supported by strong services exports and steady remittances. SBI Research expects the deficit to widen slightly in the coming two quarters before improving again toward the end of the financial year. For the full year, it estimates a deficit of 1.0 to 1.3 percent of GDP and a balance of payments gap of up to 10 billion dollars.
