Top markets for Indian exports in May included the US, the UAE, China, Singapore, the Netherlands and the UK. | Photo Credit: MARK FELIX

India’s goods exports increased 18 per cent year-on-year in May to $45.20 billion, spurred by sectors such as petroleum products, engineering goods and electronics, marking a steady start for the current fiscal year despite persistent global headwinds.

Quick estimates by the Commerce Department showed that imports during the month also surged, rising 20.62 per cent (year-on-year) to $73.41 billion, driven by sectors such as petroleum, gold and electronics. Consequently, trade deficit in May widened to $28.21 billion from $22.56 billion in May 2025, but it was slightly lower than last month’s trade deficit of $28.38 billion. 

 “The export numbers in May are one of the highest monthly trade performances despite geopolitical uncertainties. Going by the current trend, if we carry on this momentum with continued vigour, this fiscal year will be good one for trade,” Commerce Secretary Rajesh Agrawal said, adding that a peace deal in West Asia would positively impact trade.

Top nations

Top markets for Indian exports in May 2026 included the US, the UAE, China, Singapore, the Netherlands and the UK.

While petroleum products were the key drivers of export growth in May — rising 54.89 per cent to $8.42 billion, some other sectors too performed well such as engineering goods ($12.31 billion), electronics ($5.09 billion), chemicals ($2.71 billion), pharmaceuticals ($2.62 billion) and gems & jewellery ($2.53 billion).

However, exports of certain labour-intensive items such as textiles, leather, ceramic products, jute products and carpets declined during the month.

During April-May 2026-27, exports rose 16.09 per cent to $ 88.91 billion, while imports jumped 15.14 per cent to $145.35 billion, leaving a trade deficit of $ 56.44 billion compared to $ 49.65 billion in the April-May 2025-26 period.

Strong export performance in April-May despite global uncertainties demonstrates the resilience, adaptability and competitiveness of Indian exporters, said exporters’ body FIEO.

“The continued strong demand from both traditional and emerging markets reflects increasing global confidence in Indian products and services. The growing presence of Indian exporters in diverse geographies is helping strengthen India’s position in global trade and reducing dependence on a limited number of markets,” FIEO President S C Ralhan added.

India’s export growth in FY26 was nearly flat with shipments posting a 0.93 per cent (year-on-year) growth to $441.78 billion.

Published on June 15, 2026