- India's merchandise trade deficit was $28.21 billion in May, surpassing estimates
- Merchandise exports rose 18% year-on-year to $45.2 billion in May
- Imports increased 20.6% to $73.41 billion, outpacing export growth
India's merchandise trade deficit widened 25% year-on-year to $28.21 billion in May, exceeding economists' median estimate of $27.2 billion, as imports rose faster than exports, data from the Directorate General of Commercial Intelligence and Statistics showed.
The deficit narrowed slightly from $28.38 billion in April. Economists surveyed by Bloomberg had projected a deficit between $24 billion and $30 billion. The median estimate was $27.2 billion.
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Merchandise exports increased 18% year-on-year to $45.2 billion in May, while imports rose 20.6% to $73.41 billion.
The latest data showed exports strengthening for a second straight month after contracting 7.4% in March. Imports also accelerated from 10% growth in April. Services exports stood at $36.76 billion in May, while services imports were $19.06 billion.
India's cumulative imports crossed $182 billion in the first two months of fiscal 2027 (FY27), according to import data from the Ministry of Commerce And Industry.
Import growth was robust, with overall imports up 14.4% year-on-year to 182.8 billion in the April-May financial year 2027 (FY27) period, on the back of strong domestic demand.
Petroleum imports increased to $41.3 billion in April–May FY27 from $35.5 billion in the year ago period. Gold imports went up to $5.9 billion in April–May FY27.
Merchandise imports surged 15.1% year-on-year to over $19 billion year-on-year to $145.4 billion in April–May FY27.
May merchandise exports hit an all-time high of $45.2 billion, up 18% YoY. The Commerce Ministry stated that May saw India's highest-ever monthly merchandise exports.
Merchandise imports rose 20.6% year-on-year to $73.4 billion in May.
Services imports climbed 11.5% year-on-year to $37.5 billion during April–May FY27.
India posted strong export growth in both April and May, as per Commerce Secretary Rajesh Agarwal.
If current momentum continues, FY27 could be a good year for trade, Agarwal said.
Exports and imports both registered strong growth during the first two months of FY27, he added.
The Commerce Secretary stated that many of the trade-related challenges could ease significantly if the peace deal holds and remains sustainable.
India's exports to West Asia moderated from $5.7 billion in February to $5.3 billion in May 2026. Exports to West Asia dipped to $2.6 billion in March before recovering to $5.3 billion in May 2026.
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Imports from West Asia fell from $15.1 billion in January to $10.7 billion in May 2026. India's imports from the region remained below year-ago levels during March-May 2026.
West Asia's imports recovered from $8.2 billion in March to $10.7 billion in May 2026. Trade with the aforementioned areas showed signs of normalization by May despite volatility earlier in the year, as per the data.
(This is a developing story.)
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