India's exports jumped to a record high of $45.20 billion in May 2026, marking a significant milestone for the country's trade sector. The previous record was set in March 2026 at $44.5 billion. The surge was driven by robust demand for engineering goods, petroleum products, and chemicals.
Trade Deficit Remains Elevated
Despite the export boom, the trade deficit remained elevated as imports also soared. The deficit stood at $24.3 billion in May, compared to $23.8 billion in April. Imports rose to $69.5 billion, fueled by higher crude oil prices and increased gold imports.
Key Drivers of Export Growth
Engineering goods exports grew by 15% year-on-year, while petroleum product exports rose by 12%. Chemical exports also saw a healthy increase of 10%. The United States and European Union remained the top export destinations.
Government and Industry Reactions
Commerce Minister Piyush Goyal hailed the achievement, stating that the government's export promotion schemes and free trade agreements have started yielding results. Industry bodies like FIEO and CII also welcomed the data but expressed concern over the widening trade deficit.
Analysts believe that sustaining export growth will require addressing global demand uncertainties and supply chain disruptions. The Reserve Bank of India is closely monitoring the trade balance as it impacts the rupee and foreign exchange reserves.
