India’s exports soared by 18 per cent to a six-month high of $45.2 billion in May, propelled by strong growth in key sectors, even as the trade deficit expanded to $28.21 billion due to a significant rise in imports of petroleum products and gold.
Photograph: Sivaram V/Reuters
Key Points
- India’s exports surged by 18 per cent to $45.2 billion in May, marking a six-month high, driven by strong performance in electronic goods, petroleum products, engineering items, and pharmaceuticals.
- The trade deficit widened to $28.21 billion in May, up from $21.88 billion in May last year, primarily due to a 10 per cent increase in imports.
- Imports reached a three-month high of $73.41 billion in May, with significant increases in petroleum products and gold, contributing to the widening trade gap.
- Despite global geopolitical uncertainties and disruptions in West Asia, India’s exports to the region in May nearly matched last year’s figures, utilising Omani ports for shipments.
- The US-Iran peace agreement, scheduled for June 19, is expected to alleviate disruptions in international shipping, particularly through the Strait of Hormuz, which has impacted cargo movement.
Exports rose to a six-month high of 18 per cent to $45.2 billion in May, while trade deficit widened to $28.21 billion driven by a rise in imports of petroleum products amid a surge in crude oil prices.
However, the trade deficit narrowed marginally on a month-on-month basis from $28.38 billion in April.
The trade gap stood at $21.88 billion in May last year.
Rising Imports and Trade Deficit
Imports grew 10 per cent year-on-year to a three-month high of $73.41 billion in May, widening the trade deficit from a year ago.
Commerce Secretary Rajesh Agrawal said despite global geopolitical uncertainties, the country’s exports are registering good growth.
The May numbers “are one of the highest monthly export data”, he said, adding that going by the trend, this year will be good for exports.
The key drivers of exports include electronic goods, petroleum products, engineering items, and pharmaceuticals.
Fiscal Year Performance and Key Commodities
During April-May 2026-27, exports rose 16.09 per cent to $88.91 billion, while imports jumped 15.14 per cent to $145.35 billion.
The trade deficit stood at $56.44 billion.
Gold imports during the first two months of this fiscal year surged 60 per cent to $9.04 billion.
Crude oil imports rose 16.5 per cent to $41.3 billion.
Regional Trade and Geopolitical Impact
Agrawal said the country’s exports to the West Asia in May this year has almost reached to last May numbers despite disruptions in that region.
India’s exports to West Asia in May was marginally down at $5.30 billion against $5.38 billion in May 2025. India has used three ports (Duqm, Sohar and Salalah) of Oman to push the shipments in that region.
The data comes as US President Donald Trump has announced that the US and Iran have finalised a deal to end their 107-day war, which triggered a global energy crisis.
The peace agreement is scheduled to be signed on June 19 in Switzerland.
The US-Iran conflict has severely impacted the movement of ships carrying cargoes in international waters, particularly through the Strait of Hormuz.
Meanwhile, as per ​government estimates, services exports stood at $36.76 billion in May, and imports were $19.06 billion.
