Exports rise 18% to 6-month high in May; trade deficit widens

New Delhi: Driven by engineering goods, electronics and petroleum products, India's merchandise exports touched a record monthly high of $45.2 billion in May, up 18% year-on-year - the sharpest rise in six months. However, a steeper rise in imports widened the trade deficit, official data released on Monday showed.

Commerce secretary Rajesh Agrawal said that going by the trend, this year will be good for exports despite global geopolitical uncertainties.

The trade deficit in May was $28.21 billion as against $22.56 billion a year ago largely on account of a higher net oil import bill amid a surge in global energy prices. Goods imports grew 20.62% on-year to $73.41 billion.


The goods trade gap was $28.38 billion in April.

Petroleum and crude imports rose 53% on-year to $22.6 billion in May, followed by inbound electronics shipments worth $12.3 billion. Gold imports rose 34% on-year to $3.4 billion, although they were down 40% sequentially from $5.63 billion in April. The fall comes after India raised import duty on gold and silver to 15% from 6% on May 13.

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Gold imports during the first two months of the fiscal surged 60% on-year to $9.04 billion, while crude oil imports rose 16.5% to $41.3 billion.

India's imports were at the second-highest level after $76.73 billion in October last year.

West Asia Impact

On the West Asia crisis, Agrawal said while it had impacted India's exports in March, the situation improved in April and May.

Exports to West Asia nearly reached the same level as last year in May at $5.3 billion against $5.38 billion in May 2025, driven by the UAE, Saudi Arabia, Jordan and Yemen, he said. India has used Oman's Duqm, Sohar and Salalah ports to push the shipments in that region.

Month-on-month, outbound shipments to the region rose 26.2% from $4.2 billion in April.

"Many of our problems will get alleviated if the peace deal is reached and sustainable," Agrawal said, noting that improved mobility in West Asia with likely reopening of the Strait of Hormuz will have a positive impact on India's overall trade.

He said India's export base has expanded over the past 12 years, when exports nearly doubled. Services exports tripled during the same period, he added.

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The US, UAE, Singapore, China, Netherlands, UK, Bangladesh, Tanzania, Germany and Saudi Arabia were the top export destinations in May.

"The continued strong demand from both traditional and emerging markets reflects increasing global confidence in Indian products and services," said SC Ralhan, president of Federation of Indian Export Organisations. "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."

The major sourcing partners for India in May included China, Russia, the US and UAE.

The country started LPG imports from the US, apart from crude oil, Agrawal said. Overall, India's exports to the US were 0.1% down to $8.8 billion while imports rose 54% to $5.8 billion.

New Delhi imported $12.7 billion worth of goods from China in May while the exports were $2 billion.