India's September exports surge 23% as petroleum sales gain momentum

India's outbound shipments posted significant growth in September, with the 23 per cent year-on-year expansion reflecting improved demand and higher commodity prices in international markets. Petroleum product exports emerged as a key growth driver, buoyed by elevated crude oil valuations stemming from geopolitical tensions in West Asia.

The regional instability has supported global oil prices at elevated levels, enabling Indian refineries to achieve better export realisations on their petroleum shipments. This has translated into higher foreign exchange earnings for the country's oil-dependent export sector, which plays a significant role in the overall trade performance.

The expansion in merchandise exports helped moderate India's trade deficit, which narrowed to $30.21 billion in September from higher levels in previous months. The improvement reflects the government's focus on boosting export competitiveness across sectors and capitalising on global supply chain shifts.

Economists note that sustained export momentum will be crucial for India's external sector stability, particularly given global economic uncertainties. The performance in September suggests that policy measures to support exporters and favourable external conditions continue to support India's trade dynamics.