India’s Merchandise Exports Jump 18% in May, Signalling Strong Trade Momentum

India's merchandise exports recorded robust growth in May 2026, reflecting strong external demand and reinforcing optimism about the country's trade outlook for the current fiscal year.

According to data released by the Commerce Ministry, merchandise exports rose 18 per cent year-on-year to USD 45.2 billion in May. However, imports also increased significantly, climbing 20.62 per cent to USD 73.41 billion , resulting in a trade deficit of USD 28.21 billion during the month.

For the first two months of the 2026-27 fiscal year, India's merchandise exports reached USD 88.91 billion , registering a 16.09 per cent growth compared to the corresponding period last year. The performance underscores the resilience of India's export sector despite ongoing global economic uncertainties and geopolitical challenges.

Commerce Secretary Rajesh Agrawal said the current trend points to a positive year for exports, expressing confidence that outbound shipments would continue to maintain momentum in the coming months.

India's exports to the strategically important West Asia region remained largely stable, though they slipped marginally to USD 5.30 billion in May 2026 from USD 5.38 billion in the same month last year.

On the import front, gold imports surged 60 per cent during April-May to USD 9.04 billion , contributing significantly to the rise in the import bill. Higher gold purchases are often linked to increased consumer demand and investment activity but can also exert pressure on the country's trade balance.

The latest figures indicate that while strong export growth is supporting India's economic expansion and foreign exchange earnings, rising imports continue to widen the trade gap. Economists will closely watch export performance in the coming quarters as global demand conditions evolve and trade flows adjust to shifting geopolitical dynamics.

With exports maintaining double-digit growth and domestic economic activity remaining strong, the overall outlook for India's trade sector remains positive for the remainder of the fiscal year.