India's merchandise exports experienced a robust 18% year-on-year growth, reaching $45.2 billion in May, according to data from the commerce ministry. Meanwhile, imports surged by 20.62% to $73.41 billion, resulting in a trade deficit of $28.21 billion for the month, as reported by PTI.
Strong Cumulative Performance
The strong performance in May lifted cumulative merchandise exports for the April-May 2026-27 period to $88.91 billion, marking a 16.09% increase compared to the same period last year. This growth underscores the resilience of India's export sector amidst global economic challenges.
Stability in West Asia Exports
Commerce Secretary Rajesh Agrawal noted that exports to West Asia remained largely stable despite geopolitical tensions in the region. India's exports to the Middle East stood at $5.30 billion in May, slightly down from $5.38 billion in May 2025, indicating minimal impact from regional developments.
Surge in Gold Imports
Gold imports during the first two months of the current fiscal year surged by 60% to $9.04 billion, driven by strong demand. This increase contributed to the widening trade deficit.
Positive Outlook for Exports
Commenting on the future, Agrawal expressed optimism, stating that current trends point to a positive year for India's exports. "Going by the trend, this year will be good for exports," he added, highlighting the potential for sustained growth.
The TOI Business Desk, a dedicated team of journalists, continues to monitor global business trends and provide insights into India's economic performance.
