Chennai: The merchandise exports in the ongoing September quarter are expected to moderate to a three-quarter low of $110 billion. Still, the merchandise exports to moderate to a three-quarter low of around $110 billion in 2QFY26. Merchandise exports for Q1 FY26 stood at $112.17 billion. In Q2, merchandise imports are expected to increase to around $189 billion due to a steady domestic demand, finds India Ratings. The services trade surplus is expected to increase to around $50 billion in Q2 FY26 against $47.9 billion in Q1FY26.