The report highlighted a sharp increase in petroleum imports, which rose to USD 22.7 billion in May 2026 from USD 14.0 billion during the same period last year. At the same time, non-petroleum exports climbed to USD 70.7 billion during April-May FY27, compared with USD 64.0 billion in the corresponding period of the previous fiscal year.
Non-petroleum, non-gems and jewellery exports also recorded steady growth, increasing to USD 65.9 billion from USD 59.2 billion a year earlier. The rise reflects expanding demand across multiple export segments and stronger participation by Indian industries in global markets.
On the import front, non-petroleum imports remained strong at USD 104.1 billion, up from USD 90.8 billion in the previous year. According to the report, the increase was driven by sustained demand for electronics, machinery, capital goods and industrial inputs, indicating continued momentum in domestic investment activity and consumer demand.
Merchandise imports surged to USD 73.41 billion in May 2026, registering a year-on-year growth of 20.62 per cent. Cumulative imports during April-May 2026 reached USD 145.35 billion, marking a 15.14 per cent increase over the same period last year.
Meanwhile, merchandise exports rose to USD 45.20 billion in May 2026, reflecting an annual growth of 18.00 per cent. During April-May 2026, cumulative exports stood at USD 88.91 billion, recording a 16.09 per cent year-on-year increase.
Dolat Capital noted that India’s export growth is becoming increasingly broad-based across products and markets, reducing dependence on a limited number of commodity segments. The report also pointed to deeper trade engagement with Asia, the Middle East, Africa and other emerging regions, which is contributing to greater geopolitical diversification. This diversification is expected to reduce concentration risks while strengthening resilience against regional disruptions and supply-chain shocks.
The report further stated that easing geopolitical tensions in West Asia have contributed to softer crude oil prices, a development that could lower India’s oil import bill and help reduce the trade deficit in the months ahead.
In addition, petroleum product exports are expected to benefit from a favourable excise duty structure and strong pent-up demand. Higher duties on gold imports are also likely to curb non-essential imports, providing further support to efforts aimed at containing the trade deficit.
The latest trade data underscores the dual nature of India’s external sector performance, with robust export growth reflecting improving competitiveness and market diversification, while elevated imports continue to signal strong domestic economic activity. The anticipated moderation in oil prices and restrictions on non-essential imports could play a crucial role in improving the country’s trade balance going forward.
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