India’s merchandise exports rose 18% year-on-year to $45.2 billion in May, the highest monthly growth in six months, even as the trade deficit widened to $28.21 billion due to higher imports of petroleum products amid rising crude oil prices.But the trade deficit narrowed marginally from $28.38 billion in April. This amount amounted to $21.88 billion in May last year, news agency PTI reported.Imports increased 10% year-on-year to a three-month high of $73.41 billion in May, widening the deficit compared to last year.Commerce Minister Rajesh Agrawal said exports are holding up well despite geopolitical uncertainty.He added that the May figures “are one of the highest monthly export data,” adding that “going in this direction, this year will be good for exports.”Electronic goods, petroleum products, engineering goods and pharmaceuticals were among the main drivers of export growth.During April-May 2026-27, exports rose by 16.09% to $88.91 billion, while imports increased by 15.14% to $145.35 billion. The trade deficit during this period amounted to $56.44 billion.Gold imports rose by 60% to $9.04 billion during the first two months of the fiscal year, while crude oil imports rose by 16.5% to $41.3 billion.
Agrawal said exports to West Asia are almost at par with last year’s levels despite the turmoil in the region.India’s exports to West Asia stood at $5.30 billion in May compared to $5.38 billion in May 2025. India uses Omani ports at Duqm, Sohar and Salalah to facilitate shipments to the region.The trade data comes as US President Donald Trump announced that the United States and Iran had finalized an agreement to end their 107-day conflict, which sparked a global energy crisis.
The peace agreement is scheduled to be signed on June 19 in Switzerland.The US-Iranian conflict has severely disrupted the movement of cargo ships in international waters, especially through the Strait of Hormuz.Meanwhile, according to government estimates, service exports amounted to $36.76 billion in May, while service imports amounted to $19.06 billion.