Key Details
India’s export performance remained strong during the opening months of FY2026–27, with growth recorded across both merchandise and services sectors despite a widening trade deficit.
Category | Indicator | April–May 2026–27 |
|---|---|---|
Overall Trade | Total Exports (Goods + Services) | US$162.69 billion |
Export Growth | 14.66% | |
Total Imports (Goods + Services) | US$182.83 billion | |
Trade Deficit | US$20.13 billion | |
Merchandise Trade | Merchandise Exports | US$88.91 billion |
Merchandise Export Growth | 16.09% | |
Services Trade | Services Exports | US$73.79 billion |
Services Export Growth | 12.99% | |
Export Diversification | Non-Petroleum Exports | US$70.74 billion |
Non-Petroleum Export Growth | 10.49% |
Summary
Export Growth Remained Strong in the First Two Months of FY2026–27
India’s total exports (goods and services combined) reached US$162.69 billion during April–May 2026–27, registering a 14.66 percent increase over the corresponding period last year. Merchandise exports grew faster than services exports, rising 16.09 percent to US$88.91 billion, while services exports expanded 12.99 percent to US$73.79 billion. Together, these figures indicate that India’s external sector entered FY2026–27 with broad-based momentum despite continuing uncertainty in the global trade environment.
Manufacturing and Energy Exports Drove the Expansion
Export growth was led by a combination of traditional and emerging sectors. Petroleum product exports surged 54.89 percent year-on-year to US$8.42 billion, while engineering goods exports rose 24.48 percent to US$12.31 billion. Electronics exports continued their upward trajectory, growing 11.62 percent, reinforcing the role of manufacturing and production-linked sectors in India’s export strategy. The data suggest that export growth is increasingly linked to industrial output rather than a narrow set of commodity categories.
Non-Petroleum Exports Highlight Broader Export Resilience
A notable feature of the release is the continued expansion of non-petroleum exports. During April–May 2026–27, non-petroleum exports reached US$70.74 billion, registering 10.49 percent growth over the previous year. This indicates that export performance was supported not only by energy-related shipments but also by engineering products, chemicals, pharmaceuticals, electronics, agriculture and other value-added sectors. Such diversification improves resilience against fluctuations in global commodity prices.
Trade Deficit Widened Despite Export Gains
Imports also increased during the period, rising 14.38 percent to US$182.83 billion. As a result, the combined goods-and-services trade deficit widened to US$20.13 billion, compared with US$17.96 billion a year earlier. While strong services exports continue to provide an important cushion, the widening deficit highlights the need to sustain export growth while expanding domestic manufacturing capabilities in import-intensive sectors.
Policy Relevance
Signals Strength in India’s Export Sector: Double-digit growth across both merchandise and services exports indicates continued competitiveness in global markets.
Supports Manufacturing-Led Growth Objectives: Strong performance in engineering goods, electronics, chemicals and petroleum products aligns with efforts to expand India’s industrial and export base.
Highlights the Growing Importance of Services Exports: Sustained growth in services exports reinforces India’s position as a major global supplier of IT, business and professional services.
Underscores the Value of Export Diversification: Continued expansion of non-petroleum exports suggests broader export momentum and reduced dependence on a narrow set of commodities.
Calls for Close Monitoring of Trade Deficit Trends: Rising imports and a widening trade deficit highlight the need to strengthen domestic manufacturing capacity while sustaining export growth.
Follow the Full Release Here: Cumulative exports (merchandise & services) during April-May 2026-27