India’s merchandise exports clocked a robust 18 per cent growth to USD 45.2 billion in May, compared to the same month last year, despite uncertainties in the global markets, according to the commerce ministry data released on Monday.
Commerce Secretary Rajesh Agrawal said this is “one of the highest monthly export growth prints.”
The May numbers come after India’s merchandise exports rose to USD 43.56 billion in April from USD 38.28 billion a year earlier, marking the second consecutive month of high growth. The country’s merchandise exports have increased to USD 88.91 billion during the two-month April-May period of financial year 2026-27, which represents a 16.09 per cent growth over the corresponding period last year.
Agrawal said India has posted strong export growth in both April and May, while imports have also grown in a similar manner during the two months. “If we carry on this momentum, FY27 will be a good year for trade,” he told the media.
Imports grew 20.62 per cent to USD 73.41 billion during the month, leaving a trade deficit of USD 28.21 billion. The trade deficit has remained more or less flat compared with USD 28.38 billion in April this year.
However, on a year-on-year basis, merchandise imports rose 20.6 per cent to USD 73.41 billion in May, while the trade deficit widened 25 per cent from USD 22.56 billion in May 2025 because of the surge on oil prices which shot USD 100 per barrel due to the West Asia crisis.
Agrawal also said that exports to the Middle East, which had been hit earlier, improved in May. He said exports to West Asia had “more or less achieved” the same level as May 2025, with growth driven by shipments to the UAE, Saudi Arabia, Jordan and Yemen.
The Commerce Secretary also said “many of our problems will be calibrated” if the US-Iran peace deal that has just been announced “proves sustainable.”
Agrawal said India’s export base has expanded over the past 12 years, with exports nearly doubling during the period. He said services export growth had tripled over the same period and that the government expected to continue the momentum as more free trade agreements come into force.
“We hope to continue the momentum in exports growth with a new vigour with all the FTAs coming in,” Agrawal said.
The government has signed and operationalised several trade agreements in recent years, including pacts with the UAE, Australia and the European Free Trade Association.
The commerce ministry has said it will hold workshops across states to help exporters and other stakeholders understand the market access available under these agreements.
The commerce department would run these workshops in “mission mode” so that stakeholders in every state become aware of the huge potential offered by the FTAs signed recently.
