India's trade deficit in May goes slightly down to $28.21B
What's the story
India's merchandise trade deficit remained stable in May, despite an increase in both exports and imports, according to government data released today. The trade gap stood at $28.21 billion for the month, slightly down from $28.38 billion in April. Exports rose to a record high of $45.20 billion from April's figure of $43.56 billion, while imports also increased to $73.41 billion from previous month's $71.94 billion mark.
Export growth
Record high exports in May
The Commerce Ministry announced that India's merchandise exports for May were the highest monthly outbound shipments on record. Commerce Secretary Rajesh Agrawal said these exports grew 18% year-on-year, marking May as "one of the highest monthly exports growth" prints. On a year-on-year basis, merchandise imports also saw a significant jump of 20.6% to $73.41 billion in May, compared to last year's figures.
Increased deficit
Trade deficit widens by 25% year-on-year
The trade deficit for May widened by 25% from $22.56 billion in May 2025. Agrawal noted that India witnessed robust export growth in April and May, with imports also rising during this period. He said if this momentum continues, FY27 could be a great year for trade. The comments come after India's merchandise exports rose to $43.56 billion in April from last year's $38.28 billion, while imports increased to $71.94 billion from last year's $65.38 billion mark.
Regional influence
Exports to West Asia show improvement
Agrawal attributed part of the recent trade movement to the West Asia crisis, noting that exports to this region were affected earlier but improved in May. He said exports to West Asia have "more or less achieved" last year's level with growth driven by countries like UAE, Saudi Arabia, Jordan and Yemen.