New Delhi: India’s merchandise exports registered robust growth in May, rising 18 per cent year-on-year to $45.2 billion, while the country’s trade deficit narrowed slightly despite a sharp increase in imports.
Data released by the Commerce Ministry on Monday showed imports climbed 20.62 per cent to $73.41 billion during the month. Consequently, India’s merchandise trade deficit stood at $28.21 billion, marginally lower than the $28.38 billion recorded in April.
During the first two months of the current financial year (April-May 2026-27), merchandise exports rose 16.09 per cent to $88.91 billion compared with the same period last year, reflecting sustained global demand for Indian products.
Commerce Secretary Rajesh Agrawal said exports to West Asia remained resilient despite geopolitical uncertainties in the region. India’s exports to the region stood at $5.30 billion in May, compared with $5.38 billion a year ago.
On the import side, gold purchases surged sharply, with imports of the precious metal rising nearly 60 per cent during April-May to $9.04 billion, driven by strong domestic demand.
India’s services sector continued to bolster the country’s external trade position. Services exports are estimated at $36.76 billion in May, while imports stood at $19.06 billion, resulting in a trade surplus of $17.7 billion.
Taken together, India’s total exports of goods and services reached $162.69 billion during April-May, registering a growth of 14.66 per cent over the corresponding period last year.
The trade data comes amid signs of easing tensions in West Asia, which could lower energy and logistics costs globally. Industry leaders believe improved geopolitical conditions and smoother trade routes could further boost India’s export competitiveness.
The Commerce Ministry said the strong performance underscores the resilience of Indian exports and highlights the country’s growing role in global trade.
