India's Merchandise Exports Reached a Record High of $45.2 Billion in May 2026

India's merchandise exports touched a record monthly high in May 2026, supported by growth across petroleum products, engineering goods and several manufacturing sectors.  

However, imports expanded at a faster pace, lifting the import bill to the second-highest level on record and keeping the merchandise trade deficit elevated. 

Export Growth Led by Engineering and Petroleum Products 

As per news reports, merchandise exports increased 18% year-on-year to $45.2 billion, compared with $38.3 billion in May 2025.  

Petroleum product exports rose 55% to $8.42 billion, while engineering goods exports climbed 24.5% to $12.31 billion, making them among the strongest contributors to export growth. 

Electronic goods exports grew 11.6% to $5.1 billion, exports of organic and inorganic chemicals increased 12.7% to $2.7 billion, and gems and jewellery exports advanced 6.7% to $2.5 billion. 

For the first 2 months of FY 2026-27, cumulative merchandise exports reached $88.91 billion, up 16% from a year earlier. During the same period, non-petroleum exports stood at $70.7 billion, reflecting growth of 10.5%. 

Imports Push Trade Deficit Higher 

Merchandise imports jumped 22.1% to $73.41 billion, marking the 2nd-highest monthly import bill ever recorded, behind only $76.73 billion in October last year.  

As a result, the merchandise trade deficit stood at $28.21 billion, only marginally lower than $28.38 billion in April and around 25% higher than the level recorded in May 2025. 

During April and May combined, import totalled $145.35 billion, an increase of 15%, while the cumulative merchandise trade deficit widened to $56.44 billion from $49.65 billion in the corresponding period last year. 

Services Trade Remains in Surplus 

Estimated services exports for May stood at $36.76 billion, representing 13% year-on-year growth. Services imports were estimated at $19.06 billion, up 14%, resulting in an estimated services trade surplus of $17.70 billion. 

Read More: US Trade Representative to Visit India for Bilateral Trade Talks on June 23-24, 2026! 

Conclusion 

May 2026 saw India register record merchandise exports of $45.2 billion, while higher imports of crude oil, electronics and gold pushed the import bill to $73.41 billion and the merchandise trade deficit to $28.21 billion.   

Want to read stock market updates in Hindi? Angel One News gives comprehensive share market news in Hindi.  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.