India’s merchandise exports registered strong growth in May 2026, rising 18 per cent year-on-year to $45.2 billion, supported by robust demand across key sectors and higher petroleum shipments amid elevated global energy prices.
According to data released by the Commerce Ministry, merchandise imports increased 20.62 per cent to $73.41 billion, while the country’s trade deficit narrowed marginally to $28.21 billion from $28.38 billion in April.
For the first two months of FY2026-27 (April-May), merchandise exports climbed 16.09 per cent to $88.91 billion, reflecting sustained momentum in India’s external trade sector.
Commerce Secretary Rajesh Agrawal said exports to West Asia remained resilient despite recent geopolitical uncertainties, standing at $5.30 billion in May compared with $5.38 billion a year earlier. He expressed confidence that the current trajectory could make 2026-27 a strong year for Indian exports.
On the import side, gold purchases surged, with imports rising nearly 60 per cent during April-May to $9.04 billion, indicating strong domestic demand.
India’s services sector continued to strengthen the overall trade balance. Services exports are estimated at $36.76 billion in May, while imports stood at $19.06 billion, generating a trade surplus of $17.7 billion.
Combined goods and services exports reached $162.69 billion during April-May, marking a 14.66 per cent increase over the corresponding period last year.
The upbeat trade performance comes as signs emerge of easing tensions in West Asia. Progress toward a potential US-Iran peace agreement and expectations of smoother movement through the Strait of Hormuz could help lower energy, freight and insurance costs, providing additional support to Indian exporters.
Industry leaders believe improving geopolitical conditions could further enhance India’s export competitiveness. Ashwin Chandran, Chairman of the Confederation of Indian Textile Industry, said reduced supply-chain costs and improved trade conditions would benefit export-oriented sectors and support the industry’s goal of achieving $100 billion in textile and apparel exports by 2030.
The latest figures underscore the resilience of India’s export sector and strengthen expectations of a robust trade performance in the current fiscal year.