New Delhi: India’s merchandise exports registered strong growth in May, rising 18 per cent year-on-year to $45.2 billion, according to data released by the Commerce Ministry. Imports also increased sharply during the month, resulting in a trade deficit of $28.21 billion.

The latest figures reflect continued momentum in India’s external trade despite global economic uncertainties and geopolitical challenges affecting international markets.

Exports Rise Strongly In May

India’s merchandise exports stood at $45.2 billion in May 2026, compared to the corresponding period last year, registering an 18 per cent increase.

The growth was driven by strong demand across several sectors and key international markets. Commerce Ministry data showed that merchandise exports during April-May 2026-27 reached $88.91 billion, reflecting a growth of 16.09 per cent over the same period in the previous financial year.

The performance highlights the resilience of India’s export sector amid evolving global trade conditions.

Imports Increase Over 20 Per Cent

Imports during May rose 20.62 per cent to $73.41 billion.

The higher import bill contributed to a merchandise trade deficit of $28.21 billion during the month. The increase in imports was supported by demand for energy products, industrial inputs and other essential commodities required by the domestic economy.

The trade deficit represents the gap between the value of goods imported and exported during the period.

West Asia Exports Remain Stable

Commerce Secretary Rajesh Agrawal said India’s exports to West Asia witnessed only a marginal decline during May.

According to the data, exports to the region stood at $5.30 billion compared with $5.38 billion recorded in May 2025.

Despite ongoing geopolitical developments in the region, export performance remained broadly stable.

Singapore, China And UK Drive Growth

Among India’s major trading partners, Singapore, China and the United Kingdom recorded significant growth in trade activity.

Officials noted that exports to Singapore saw a sharp increase, largely supported by shipments of petroleum products.

Meanwhile, trade growth with Tanzania was driven by strong exports of gems and jewellery as well as petroleum products.

The government continues to focus on expanding export opportunities across strategic markets while strengthening India’s position in global supply chains.

Outlook For India’s Trade Sector

The sustained growth in exports during the first two months of the financial year signals positive momentum for India’s trade sector. However, rising imports and a widening trade deficit remain areas that policymakers will continue to monitor closely.

Industry experts believe that continued diversification of export markets, stronger manufacturing output and favourable global demand conditions will be critical in supporting export growth in the coming months.

Conclusion

India’s merchandise exports maintained a strong growth trajectory in May, rising 18 per cent year-on-year. While imports also increased significantly, leading to a trade deficit of $28.21 billion, the overall trade performance highlights the resilience of India’s export sector and its growing presence in key international markets.

Excerpt: India’s merchandise exports rose 18 per cent to $45.2 billion in May, while imports increased 20.62 per cent, resulting in a trade deficit of $28.21 billion.

Tags: India exports growth May 2026, India’s trade deficit statistics, merchandise exports India, Commerce Ministry trade data, India international trade performance

SEO Meta Title: India’s Exports Rise 18%, Trade Deficit At $28.21 Billion

Meta Description: India’s merchandise exports grew 18 per cent to $45.2 billion in May, while imports rose 20.62 per cent, pushing the trade deficit to $28.21 billion.

Facebook Hashtags: #IndianEconomy #Exports #TradeDeficit #BusinessNews