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June 15, 2026 at 11:50 AM IST
India’s merchandise trade deficit stayed elevated at $28.21 billion in May as imports rose faster than exports, keeping pressure on the external account despite strong growth in engineering goods, petroleum products and electronics shipments.
Merchandise exports rose 18% on year to $45.20 billion in May, while imports increased 20.6% to $73.41 billion, commerce ministry data showed. The April-May merchandise deficit stood at $56.44 billion, with exports at $88.91 billion and imports at $145.35 billion.
India’s total exports, including merchandise and services, were estimated at $162.69 billion during April-May, up 14.66% from a year earlier, according to commerce ministry.
The import bill was led by petroleum, crude and products, which rose 53.80% on year to $22.68 billion in May. Electronic goods imports increased 35.49% to $12.32 billion, while gold imports rose 33.97% to $3.42 billion.
Prices of crude oil and gold have risen sharply on an annual basis amid conflict in West Asia.
On the export side, petroleum products rose 54.89% to $8.42 billion, engineering goods increased 24.48% to $12.31 billion and electronic goods rose 11.62% to $5.10 billion. Drugs and pharmaceuticals exports rose 6.13% to $2.63 billion.
The rise in oil-linked trade on both sides partly reflects higher energy prices and stronger volumes, keeping the deficit wide even as petroleum product exports improved. Petroleum product exports rose 44.63% during April-May to $18.17 billion, while petroleum, crude and product imports rose 16.52% to $41.30 billion.
Non-oil import categories also remained firm. Vegetable oil imports rose 32.26% in May, fertiliser imports increased 28.04%, non-ferrous metals rose 24.56%, and machinery, electrical and non-electrical imports increased 11.55%.
Country-wise, the US remained India’s largest export destination in May at $8.82 billion, though shipments were nearly flat from a year earlier. Exports to Singapore rose 68.96% to $1.90 billion, while exports to China increased 24.80% to $2.02 billion.
China remained India’s largest import source, with imports rising 23.40% to $12.73 billion. Imports from Russia rose 63.46% to $9.48 billion, while imports from the US increased 54.43% to $5.87 billion.
Highlights
* India May merchandise trade deficit at $28.21 billion
* May merchandise exports up 18.00% on year at $45.20 billion
* May merchandise imports up 20.62% on year at $73.41 billion
* April-May merchandise deficit at $56.44 billion
* April-May merchandise exports up 16.09% at $88.91 billion
* April-May merchandise imports up 15.14% at $145.35 billion
* Petroleum product exports up 54.89% at $8.42 billion in May
* Petroleum, crude and product imports up 53.80% at $22.68 billion
* Engineering goods exports up 24.48% at $12.31 billion
* Electronic goods exports up 11.62% at $5.10 billion
* Electronic goods imports up 35.49% at $12.32 billion
* Gold imports up 33.97% at $3.42 billion
