Merchandise exports hit $45.2bn in May; deficit $28.21bn

Record month for outbound shipments

India’s merchandise exports rose to a record USD 45.20 billion in May, supported by stronger shipments of petroleum products and engineering goods, alongside a recovery in exports to West Asia. The commerce ministry said May marked the country’s highest monthly outbound shipments on record. Provisional data released by the Ministry of Commerce and Industry showed exports were up 18% year-on-year.

Imports stay elevated, trade deficit at $18.21bn

Imports increased to USD 73.41 billion in May, up from USD 71.94 billion in April, reflecting elevated costs, including higher energy prices. With exports at USD 45.20 billion, the merchandise trade deficit stood at USD 28.21 billion in May. The deficit was higher than USD 22.56 billion a year ago, even as it was slightly lower than USD 28.38 billion recorded in April.

How May compared with April

Month-on-month, exports rose from USD 43.56 billion in April to USD 45.20 billion in May. Imports also expanded from USD 71.94 billion in April to USD 73.41 billion in May. The data points to steady external demand for key product categories even as India’s import bill remains firm.

What drove export growth

The ministry’s data and official commentary highlighted strong performance in engineering goods, petroleum products, and electronics goods. These categories helped lift India’s monthly exports to a new peak, despite mixed global conditions. Commerce Secretary Rajesh Agrawal described May as “one of the highest monthly exports growth” prints, with goods exports growing 18% year-on-year to USD 45.20 billion.

West Asia shipments held steady

Exports to West Asia were a key focus in official remarks because of ongoing geopolitical developments in the region. Agrawal said exports to West Asia remained largely stable. India’s exports to the Middle East were USD 5.30 billion in May, compared with USD 5.38 billion in May 2025, indicating limited year-on-year change for that corridor.

April-May exports at $18.91bn

For April-May 2026-27, cumulative merchandise exports stood at USD 88.91 billion, up 16.09% versus the corresponding period last year. The two-month aggregate underlines that the May jump was not a one-off, but part of a broader improvement at the start of the fiscal year.

Gold imports jump in early FY27

The import mix also showed pressure points. Gold imports during the first two months of the current fiscal surged 60% to USD 9.04 billion, according to the ministry data. Higher gold imports can add to the import bill and influence the trade balance even when exports are growing.

Key numbers at a glance

Market impact and what to watch

The latest print reinforces two parallel trends visible in the data. First, export gains were broad enough to lift monthly shipments to a record, with engineering goods, petroleum products, and electronics contributing to the rise. Second, imports continue to remain elevated, keeping the trade deficit wide at USD 28.21 billion, which matters for currency markets and for companies exposed to imported inputs.

From a policy and business perspective, the ministry’s focus on product-wise strength and regional stability in West Asia signals where near-term monitoring will stay concentrated. Agrawal said current trends point to a positive year for India’s exports, with the April-May run rate showing double-digit growth.

Conclusion

May delivered a record USD 45.20 billion in merchandise exports, while imports of USD 73.41 billion kept the trade deficit at USD 28.21 billion. The early fiscal-year tally of USD 88.91 billion in April-May exports and stable West Asia shipments will be closely tracked in upcoming monthly releases from the commerce ministry.