Exports register 6-month high growth of 18% in May; trade deficit widens to USD 28.21 billion

Exports rose to a six-month high of 18 per cent to USD 45.2 billion in May, while trade deficit widened to USD 28.21 billion driven by a rise in imports of petroleum products amid a surge in crude oil prices. However, the trade deficit narrowed marginally on a month-on-month basis from USD 28.38 billion in April. The trade gap stood at USD 21.88 billion in May last year. Imports grew 10 per cent year-on-year to a three-month high of USD 73.41 billion in May, widening the trade deficit from a year ago. Commerce Secretary Rajesh Agrawal said despite global geopolitical uncertainties, the country's exports are registering good growth. The May numbers "are one of the highest monthly export data", he said, adding that going by the trend, this year will be good for exports. The key drivers of exports include electronic goods, petroleum products, engineering items, and pharmaceuticals. During April-May 2026-27, exports rose 16.09 per cent to USD 88.91 billion, while imports jumped 15.14 per cent to USD 145.35 billion. The trade deficit stood at USD 56.44 billion. Gold imports during the first two months of this fiscal year surged 60 per cent to USD 9.04 billion. Crude oil imports rose 16.5 per cent to USD 41.3 billion. Agrawal said the country's exports to the West Asia in May this year has almost reached to last May numbers despite disruptions in that region. India's exports to West Asia in May was marginally down at USD 5.30 billion against USD 5.38 billion in May 2025. India has used three ports (Duqm, Sohar and Salalah) of Oman to push the shipments in that region. The data comes as US President Donald Trump has announced that the US and Iran have finalised a deal to end their 107-day war, which triggered a global energy crisis. The peace agreement is scheduled to be signed on June 19 in Switzerland. The US-Iran conflict has severely impacted the movement of ships carrying cargoes in international waters, particularly through the Strait of Hormuz. Meanwhile, as per ​government estimates, services exports sto