According to SBI Research, despite instability in the global market, India’s exports have remained stable. The report said that between April and September in FY26, exports reached $220 billion, which is 2.9 percent more than $214 billion in the same period last year. Exports to the United States also increased by 13 percent to $45 billion. However, exports declined by about 12 percent year-on-year in September. America remains a major market, but from July 2025, its share in India’s total exports has declined to 15 percent in September. The US’s share in India’s marine product exports declined from 20 per cent in FY25 to 15 per cent in September, and its share in precious stones declined from 37 per cent to 6 per cent.
Exports increased from these countries
Both marine products and ready-made cotton garments registered growth during the April-September period. India’s export sector has become more geographically diversified. Share in many product groups has increased in countries like UAE, China, Vietnam, Japan, Hong Kong, Bangladesh, Sri Lanka and Nigeria. SBI Research suggests that some of this may indicate indirect imports of Indian goods, as Australia’s share in precious stone imports from the US has increased from 2 percent to 9 percent, while Hong Kong’s share has increased from 1 percent to 2 percent.
Government gave incentive to exporters
On the trade policy front, India is grappling with high US tariffs under the Trump administration, which has impacted textiles, jewelery and seafood, especially shrimp. To support exporters, the government has approved assistance of Rs 45,060 crore, which includes a credit guarantee of Rs 20,000 crore. Amidst the global financial turmoil, the rupee also remained under pressure against the dollar on Friday and fell to 89.49.
What is the fiscal deficit?
India’s fiscal deficit narrowed to 0.2 per cent of GDP in Q1FY26, better than 0.9 per cent a year ago, supported by service exports and remittances. SBI Research expects the loss to widen slightly in the next two quarters and then turn positive by the end of the financial year. SBI Research estimates that the full year’s deficit could be 1.0-1.3 percent of GDP and the balance of payments gap could be up to $10 billion.