Key facts
- India's merchandise exports hit a record $45.2 billion in May, an 18% year-on-year increase.
- Imports grew 20.62% to $73.41 billion in May.
- The trade deficit widened to $28.21 billion in May.
- Commerce Secretary Rajesh Agrawal expressed confidence in continued export momentum.
- Imports from China rose to $24.7 billion in April-May 2026.
India's merchandise exports reached a record high of $45.2 billion in May, marking an 18% increase year-on-year. This growth was accompanied by a 20.62% rise in imports, which totaled $73.41 billion, resulting in a trade deficit of $28.21 billion for the month. This deficit is wider than the $22.56 billion recorded in May of the previous year and the $28.38 billion from April.
Commerce Secretary Rajesh Agrawal noted that India has experienced strong export growth in both April and May, expressing optimism that this momentum will lead to a strong fiscal year for trade. He indicated that export levels in May have nearly matched those of May 2025, with key growth drivers including shipments to the UAE, Saudi Arabia, Jordan, and Yemen. Agrawal also mentioned that the ongoing West Asia crisis had impacted exports in March, but the situation improved in April and May.
Data indicates that imports from China increased to $24.7 billion in April-May 2026, up from $20.22 billion in the same period last year. Agrawal also highlighted that India has begun importing Liquefied Petroleum Gas (LPG) from the US, in addition to crude oil, and is sourcing LPG from new destinations. Exports to the US saw a 0.5% increase, to the EU by 0.47%, and to China by 25.85% in April-May 2026, while exports to the UAE showed growth in May after earlier dips.