India’s Merchandise Exports Soar to New Heights
India has achieved a record high in merchandise exports, reaching an impressive $45.2 billion in May 2026. This marks an 18% increase from the same period last year, according to official data released by the Ministry of Commerce and Industry.
Key Drivers of Export Growth
The significant growth in exports can be attributed to increased shipments to several countries, including Singapore, China, the U.K., Tanzania, Bangladesh, Germany, and South Africa. Moreover, the growth was broad-based across various sectors, with both petroleum and non-petroleum sectors experiencing strong export growth in May 2026.
Notable sectors that contributed to the export growth include electronic goods, which saw an 11.6% increase to $5.1 billion, and the organic and inorganic chemicals sector, which grew by 12.7% to $2.7 billion. The engineering goods category also witnessed a substantial jump of 24.5% to $12.3 billion, while the gems and jewellery sector experienced a 6.7% growth to $2.5 billion.
Widening Trade Deficit
Despite the historic high in merchandise exports, India’s trade deficit widened to $10.5 billion in May 2026, compared to $6.8 billion in May last year. This can be attributed to a sharper growth in imports, which rose 22.1% to $73.4 billion in May 2026.
Services imports also grew 14.1% to $19.1 billion in May 2026. The merchandise trade deficit stood at $28.2 billion, a 25% increase from May 2025. However, India’s non-petroleum exports grew 10.5% to $70.7 billion in the first two months of this financial year.
Source: Original Article
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