India Records 14.7% Export Growth in FY27’s First Two Months; Trade Gap Widens to $20 Billion

Ziraat Times Team Report

New Delhi, June 15: India’s overall exports, including merchandise and services, grew by 14.66 percent during April-May of the current financial year, reaching an estimated US$ 162.69 billion compared to US$ 141.89 billion during the corresponding period last year, according to data released by the Ministry of Commerce and Industry on Monday.

The cumulative value of merchandise exports during April-May 2026-27 stood at US$ 88.91 billion, registering a growth of 16.09 percent over US$ 76.59 billion recorded during the same period of 2025-26. Non-petroleum exports also recorded positive growth, rising by 10.49 percent to US$ 70.74 billion.

For May 2026 alone, India’s total exports were estimated at US$ 81.96 billion, an increase of 15.83 percent over May 2025. Total imports during the month rose by 19.23 percent to US$ 92.47 billion, resulting in an overall trade deficit of US$ 10.51 billion.

Merchandise exports in May stood at US$ 45.20 billion, compared to US$ 38.30 billion in the corresponding month last year, while merchandise imports increased to US$ 73.41 billion from US$ 60.86 billion.

The government said the growth in merchandise exports during May was led by petroleum products, engineering goods, organic and inorganic chemicals, electronic goods, and gems and jewellery.

Exports of petroleum products rose sharply by 54.89 percent to US$ 8.42 billion, while engineering goods exports increased by 24.48 percent to US$ 12.31 billion. Exports of organic and inorganic chemicals grew by 12.71 percent, electronic goods by 11.62 percent, and gems and jewellery by 6.66 percent.

Other sectors that recorded notable export growth included cereals, meat and dairy products, oil meals, handicrafts, plastics, iron ore, pharmaceuticals, coffee, and processed food products.

Services exports also continued to perform strongly. The estimated value of services exports during April-May 2026-27 reached US$ 73.79 billion, compared to US$ 65.30 billion during the same period last year, reflecting a growth of nearly 13 percent. Services imports stood at US$ 37.48 billion, resulting in a services trade surplus of US$ 36.31 billion.

Among export destinations, the highest growth during April-May was recorded in shipments to Singapore, Tanzania, Sri Lanka, South Africa, and China. On the import side, major increases were seen in purchases from Russia, China, Oman, the United States, and Brazil.

Despite the strong export performance, India’s cumulative trade deficit widened to US$ 20.13 billion during April-May 2026-27 from US$ 17.96 billion in the corresponding period last year, largely due to higher imports.