India recorded its highest-ever monthly merchandise exports in May 2026, with outbound shipments rising to $45.20 billion, even as imports climbed to $73.41 billion, according to data released by the Commerce Ministry on June 15.
The country’s merchandise trade deficit remained largely unchanged at $28.21 billion in May, compared with $28.38 billion in April, reflecting strong growth in both exports and imports.
Commerce Secretary Rajesh Agrawal said merchandise exports grew 18% year-on-year, describing May’s performance as one of the strongest monthly export growth figures in recent years. Imports rose 20.6% year-on-year, leading to a wider trade deficit compared with $22.56 billion recorded in May 2025.
Agrawal noted that India had maintained robust export momentum in both April and May and expressed confidence that continued growth could make FY2026-27 a strong year for the country’s trade sector.
The recovery in exports was supported by improving shipments to West Asia, where trade had previously been affected by regional tensions. According to the commerce ministry, exports to the region returned to levels comparable with May 2025, led by stronger demand from the United Arab Emirates, Saudi Arabia, Jordan, and Yemen.
The development follows a preliminary peace agreement between the United States and Iran, aimed at restoring stability in the strategically important Strait of Hormuz, a critical route for global energy trade and India’s crude oil imports.
Highlighting India’s long-term trade progress, Agrawal said merchandise exports have nearly doubled over the past 12 years, while services exports have tripled. He added that recently concluded free trade agreements with the United Arab Emirates, Australia, and the European Free Trade Association are expected to further boost export growth.
The Commerce Ministry plans to conduct nationwide workshops in “mission mode” to help exporters better utilize opportunities created by these agreements. The government is also working to expand access to trade data and develop more granular services trade statistics to support policymaking and strengthen India’s export ecosystem.
Officials said these initiatives form part of a broader strategy to create a sustainable export-led growth pathway that can support India’s economic expansion over the next two decades.
