India's goods exports reach record high of $45.2 billion in May, but trade deficit widens
India's merchandise exports surged to a record high of $45.2 billion in May 2026, an 18% increase from the previous year, while services exports also grew by 13.2% to $36.8 billion. Despite this robust export performance, the overall trade deficit widened significantly to $10.5 billion, up from $6.8 billion last May, primarily due to a sharper growth in imports of both goods and services. Merchandise imports jumped 22.1% to $73.4 billion, leading to a merchandise trade deficit of $28.2 billion in May, 25% higher than May 2025. Key export sectors like engineering goods, electronic goods, and chemicals showed strong growth, indicating a broad-based increase.
Key Points
- India's merchandise exports reached a record high of $45.2 billion in May 2026, an 18% increase year-on-year.
- Services exports also saw significant growth, rising by 13.2% to $36.8 billion in May 2026.
- Despite strong export growth, India's overall trade deficit widened to $10.5 billion due to a sharper increase in imports.
- Merchandise imports surged by 22.1% to $73.4 billion, resulting in a merchandise trade deficit of $28.2 billion.
- Export growth was broad-based, with strong performances in engineering goods, electronic goods, and organic/inorganic chemicals.
Exam Facts
- Merchandise exports: $45.2 billion in May 2026.
- Services exports: $36.8 billion in May 2026.
- Overall trade deficit: $10.5 billion in May 2026.
- Merchandise imports: $73.4 billion in May 2026.
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