India's total exports — merchandise and services combined — reached $81.96 billion in May 2026, registering a year-on-year growth of 15.83 per cent, according to data released by the Commerce Ministry on Monday, 15 June 2026. The figure marks one of the stronger monthly export readings in recent quarters, driven by a broad-based surge across petroleum products, engineering goods, and electronics.

Merchandise and Services Breakdown

Merchandise exports for May 2026 stood at $45.20 billion, up from $38.30 billion in May 2025 — a gain of roughly 18 per cent. Services exports were estimated at $36.76 billion, compared to $32.46 billion a year earlier. On a cumulative basis, merchandise exports during April–May 2026 totalled $88.91 billion, against $76.59 billion in the same period last year, reflecting a growth of 16.09 per cent. Services exports for the same two-month window came in at $73.79 billion, up from $65.30 billion.

Key Drivers of Export Growth

Petroleum products led the charge, surging 54.89 per cent from $5.44 billion in May 2025 to $8.42 billion in May 2026. Engineering goods followed, climbing 24.48 per cent to $12.31 billion from $9.89 billion. Electronic goods exports rose 11.62 per cent to $5.10 billion, while gems and jewellery posted a more modest 6.66 per cent gain, reaching $2.53 billion. Organic and inorganic chemicals also featured among the major contributors, according to the official data.

Import Picture and Trade Deficit

Total imports for May 2026 were estimated at $92.47 billion, a growth of 19.23 per cent over May 2025 — outpacing export growth and widening the headline trade gap. The merchandise trade deficit for April–May 2026-27 widened to $56.44 billion, compared to $49.65 billion in the corresponding period of the previous year. Cumulative non-petroleum exports during April–May were valued at $70.74 billion, up 10.49 per cent from $64.03 billion, suggesting underlying non-oil export momentum remains solid, if less dramatic.

Services Surplus Provides a Buffer

A key offset to the merchandise deficit is India's services trade performance. The services trade surplus for April–May 2026-27 rose to $36.31 billion, from $31.69 billion in the same period last year — a gain of nearly $4.6 billion. This expanding surplus, largely driven by IT and business process services, continues to cushion the overall current account position. Notably, this is the third consecutive year in which the services surplus has expanded in the April–May window.

What to Watch

The widening merchandise trade deficit — imports growing faster than exports — will be a number that policymakers and the Reserve Bank of India (RBI) track closely in the context of the current account deficit and rupee stability. Whether petroleum product export momentum can be sustained will depend partly on global crude price movements and refinery utilisation. The next monthly trade data release will indicate if May's broad-based growth was a seasonal spike or the beginning of a sustained upward trend.