India’s Merchandise Exports Surge 18% in May, Reflecting Strong Global Demand and Expanding Trade Integration

India’s Merchandise Exports Surge 18% in May, Reflecting Strong Global Demand and Expanding Trade Integration

India’s merchandise exports surged 18 per cent to a six-month high of $45.2 billion in May, reflecting stronger global demand, rising competitiveness of Indian industries, and deeper integration into global value chains. Experts attribute the growth to diversified export markets, trade facilitation measures, infrastructure improvements, and policy-driven export promotion initiatives.

 

India’s merchandise exports recorded a robust 18 per cent year-on-year growth in May, reaching a six-month high of $45.2 billion, underscoring the growing competitiveness of domestic industries and the country’s deeper integration into global value chains. However, the trade deficit widened to $28.21 billion during the month due to higher imports of petroleum products amid rising crude oil prices.

According to industry experts, the strong export performance reflects increasing global confidence in Indian products and the ability of Indian companies to adapt to changing international demand patterns. The growth also highlights the expanding presence of Indian enterprises across diversified export markets.

Sanjay Budhia, Co-chair of the National Committee on Exports at the Confederation of Indian Industry and Managing Director of Patton International Ltd, said the increase in outbound shipments demonstrates the strengthening competitiveness of Indian industry. He noted that the healthy export growth recorded during the first two months of the 2026-27 financial year indicates that Indian businesses are becoming increasingly integrated into global value chains while effectively responding to evolving market requirements.

During the April-May period of 2026-27, India’s exports rose by 16.09 per cent to .91 billion. Imports during the same period increased by 15.14 per cent to 5.35 billion, resulting in a trade deficit of .44 billion.

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Budhia emphasized that sustained efforts in improving market access, enhancing trade facilitation measures, and strengthening export competitiveness will be crucial for maintaining the current growth trajectory and reinforcing India’s position in global trade.

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Echoing similar views, Federation of Indian Export Organisations President SC Ralhan highlighted the country’s key export destinations during April-May 2026-27. These included the United Arab Emirates, Singapore, China, the Netherlands, the United Kingdom, Bangladesh, Tanzania, Germany, and Saudi Arabia.

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Ralhan stated that ongoing infrastructure development, digital trade facilitation initiatives, Free Trade Agreements, Production-Linked Incentive schemes, and proactive export promotion efforts undertaken by Indian diplomatic missions abroad are expected to further enhance India’s export competitiveness in the coming months.

The latest export figures signal sustained momentum in India’s external trade sector, reflecting stronger global market penetration, broader geographic diversification, and the growing ability of Indian businesses to compete effectively on the international stage.

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