India clocks record $45.2 billion exports in May as trade deficit eases despite $73.4 billion imports – Firstpost

India’s trade deficit narrowed marginally in May as record-high exports helped offset the pressure from a rising import bill driven by elevated global energy prices.
The merchandise trade deficit stood at $28.21 billion in May, slightly lower than $28.38 billion in April and below economists’ expectations of $28.72 billion, government data showed on Monday.

India’s merchandise exports climbed to a record $45.20 billion in May, compared with $43.56 billion in April, reflecting stronger overseas demand and improved trade momentum. Imports also increased to $73.41 billion, up from $71.94 billion in the previous month, as energy purchases continued to weigh on the trade balance.

“The strong export performance reflects resilient trade momentum, growing global demand for Indian goods and services, and India’s expanding role in the global economy,” the commerce ministry said.

The services sector continued to provide support, with services exports estimated at $36.76 billion in May against imports of $19.06 billion, resulting in a services trade surplus of around $17.7 billion.

During the April-May period of FY27, India’s total exports — including merchandise and services — reached $162.69 billion, registering a 14.66 per cent growth compared with the same period last year.

The trade numbers come amid easing concerns over global energy markets after the United States and Iran reportedly agreed on a framework aimed at ending hostilities, removing restrictions on Iran, and reopening the Strait of Hormuz — a crucial route for global oil shipments.

Lower oil prices could provide relief to India, the world’s third-largest crude importer, by reducing import costs and helping keep the trade deficit under control in the coming months.