Goods exports hit record high of $45.2 billion in May 2026, trade deficit widens on higher import growth

India’s merchandise exports jumped to a record high of $45.2 billion in May 2026, 18% higher than in May last year, according to official data. However, despite this, India’s overall trade deficit widened to $10.5 billion due to a sharper growth in imports of both goods and services.

The data released by the Ministry of Commerce and Industry shows that India’s merchandise exports rose in May 2026, due to higher shipments to Singapore, China, the U.K., Tanzania, Bangladesh, Germany, and South Africa, among others. 

This increase was also relatively broad-based in terms of sectors, with both petroleum and several non-petroleum sectors seeing strong growth in exports in May 2026.

Export high

India’s total merchandise exports rose to $45.2 billion in May 2026 from $38.3 billion in May last year. Services exports rose 13.2% during the same period, to $36.8 billion in May 2026.

Within merchandise exports, the electronic goods sector saw exports growing 11.6% to $5.1 billion in May 2026. The organic and inorganic chemicals sector similarly saw exports grow by 12.7% to $2.7 billion during the same period.

Notably, the engineering goods category saw exports jumping 24.5% in May 2026 to $12.3 billion. The gems and jewellery sector, too, saw a growth in exports of 6.7% to $2.5 billion in May 2026.

Overall, the data shows India’s non-petroleum exports grew 10.5% to $70.7 billion in the first two months (April-May) of this financial year.  

Imports grow faster

However, despite this historic high in terms of merchandise exports, India’s trade deficit widened to $10.5 billion in May 2026 from $6.8 billion in May last year due to imports rising even faster than exports. 

India’s merchandise imports jumped 22.1% to $73.4 billion in May 2026. As a result, the merchandise trade deficit stood at $28.2 billion in May this year, 25% higher than in May 2025.

Services imports, too, grew 14.1% in May 2026 to $19.1 billion.