India's Merchandise Exports Rise 18% in May Amid Wider Trade Deficit
India's merchandise exports rose 18% to a record $45.2 billion in May 2026, driven by strong shipments of petroleum products, engineering goods, and electronics. Imports increased 20.6% to $73.41 billion, widening the trade deficit slightly to $28.21 billion. Services exports also grew, supporting the external trade balance. Exports to West Asia showed signs of recovery amid easing geopolitical tensions following a US-Iran peace deal, which is expected to stabilize energy supplies and reduce import costs. Overall trade, including goods and services, expanded with robust demand across multiple regions despite ongoing global uncertainties.