India's Exports Rise Nearly 15% in April-May; Petroleum, Engineering Goods Lead Growth

India's exports maintained strong momentum in the first two months of the 2026-27 fiscal year, with total exports of goods and services rising 14.66 percent year-on-year to an estimated US$ 162.69 billion during April-May, driven by robust growth in petroleum products, engineering goods, chemicals, electronics, and services.

According to data released by the Commerce Ministry on Monday, Merchandise exports grew 16.09 percent to US$ 88.91 billion during the two-month period, up from US$ 76.59 billion a year earlier. Non-petroleum exports also remained strong, rising 10.49 percent to US$ 70.74 billion from US$ 64.03 billion in April-May 2025-26.

India's total imports during April-May 2026-27 increased 14.38 percent to US$ 182.83 billion, resulting in an overall trade deficit of US$ 20.13 billion compared with US$ 17.96 billion in the same period last year.

Exports Surge in May

Total exports, including merchandise and services, reached an estimated US$ 81.96 billion in May 2026, registering a growth of 15.83 percent over US$ 70.76 billion recorded in May 2025.

Merchandise exports rose to US$ 45.20 billion in May from US$ 38.30 billion a year earlier, while services exports were estimated at US$ 36.76 billion compared with US$ 32.46 billion in May 2025.

Imports also increased sharply during the month. Total imports climbed 19.23 percent to US$ 92.47 billion, leading to a trade deficit of US$ 10.51 billion, compared with US$ 6.79 billion in May last year.

Commenting on the trade performance, S C Ralhan, President, FIEO, said that the strong growth in exports during the first two months of FY 2026-27 is a highly encouraging sign for India's external sector. Achieving over 16 percent growth in merchandise exports and nearly 15 percent growth in overall exports despite global uncertainties demonstrates the resilience, adaptability and competitiveness of Indian exporters. 

Petroleum Products Lead Export Growth

Petroleum products emerged as the biggest contributor to export growth in May, with shipments surging 54.89 percent to US$ 8.42 billion from US$ 5.44 billion a year earlier.

Engineering goods, India's largest export category, grew 24.48 percent to US$ 12.31 billion, while exports of organic and inorganic chemicals increased 12.71 percent to US$ 2.72 billion.

Electronic goods exports continued their upward trajectory, rising 11.62 percent to US$ 5.10 billion. Gems and jewellery exports also registered growth of 6.66 percent, reaching US$ 2.53 billion.

Other sectors recording notable growth included meat, dairy and poultry products, oil meals, handicrafts, plastics and linoleum products, iron ore, pharmaceuticals, rice, coffee, and processed food products.

Agricultural Exports Show Healthy Growth

Agricultural and allied products also contributed to India's export expansion in May 2026. Exports of other cereals recorded the sharpest growth, surging 262.73 percent year-on-year, while meat, dairy and poultry products exports increased 42.51 percent. Oil meal exports rose 24.61 percent, reflecting strong overseas demand for animal feed ingredients. Rice exports grew 5.38 percent, coffee shipments increased 4.37 percent, and exports of cereal preparations and miscellaneous processed food products rose 4.4 percent. The positive performance across several farm and food categories highlights the resilience of India's agricultural export sector and its growing role in supporting overall merchandise export growth.

Strong Performance in Non-Petroleum Exports

Non-petroleum exports stood at US$ 36.78 billion in May, up from US$ 32.87 billion a year earlier. Non-petroleum and non-gems-and-jewellery exports rose to US$ 34.24 billion from US$ 30.49 billion in May 2025.

During April-May, non-petroleum and non-gems-and-jewellery exports increased to US$ 65.89 billion compared with US$ 59.15 billion in the corresponding period of the previous fiscal year, reflecting broad-based export growth beyond traditional commodity sectors.

Services Exports Continue to Expand

India's services sector remained a key driver of overall exports. Services exports during April-May 2026-27 are estimated at US$ 73.79 billion, up 12.99 percent from US$ 65.30 billion in the same period last year.

Services imports rose to US$ 37.48 billion from US$ 33.61 billion, resulting in a services trade surplus of US$ 36.31 billion during the first two months of the fiscal year.

Singapore, Tanzania Among Fastest-Growing Markets

Among major export destinations, Singapore, South Africa, Tanzania, Italy, and Sri Lanka recorded the highest growth in export value during May 2026 compared with the same month last year.

For the April-May period, Singapore, Tanzania, Sri Lanka, South Africa, and China emerged as the fastest-growing export markets for Indian goods.

On the import side, Russia, China, the United States, Oman, and Brazil registered the highest increases in shipments to India during both May and the April-May period.

The latest trade figures indicate sustained strength in India's export sector despite global economic uncertainties, supported by rising demand for petroleum products, engineering goods, electronics, chemicals, and services exports.