Indian trade: Mechandise exports decline in May; deficits narrows to $6.62 billion

India’s total exports including both merchandise and services, climbed to $71.12 billion in May 2025, marking a 2.77% increase compared to the same month last year, data released by the Union commerce ministry showed on Monday.

In May 2024, the figure stood at $69.20 billion.

While merchandise exports saw a slight dip from $39.59 billion to $38.73 billion, services exports rose notably, reaching $32.39 billion, up from $29.61 billion a year earlier.

On the import front, India brought in goods and services worth $77.75 billion in May, marginally down from $78.55 billion last year.

The trade deficit also improved, narrowing to $6.62 billion from the $9.35 billion in May 2024.

How were the first two months of FY26?

During the first two months of the ongoing financial year (April–May 2025), overall exports reached $142.43 billion, up 5.75% against the corresponding period last year.

Imports during the same period also rose by 6.52%, increasing from $149.81 billion to $157.57 billion. However, this growth widened the trade deficit slightly to $17.14 billion, compared to $15.12 billion in the year-ago period.

India’s overall exports achieved a record-breaking performance in 2024–25. The country’s total exports hit an all-time high of $824.9 billion, exceeding the initial target of $800 billion and registering a 6.01% growth against the previous year’s $778.1 billion.

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