Exports Post Double-Digit Growth in May, Continuing April's Trend
India's Export Growth Continues for Second Straight Month in May
India's exports are likely to have registered double-digit growth for a second consecutive month in May, following a strong performance in April. According to a senior government official, the growth in exports has been consistent across various sectors, despite the ongoing West Asia war.
The official noted that May's export growth is expected to closely track April's performance. In May 2025, India's merchandise exports stood at $38.88 billion, a 2 percent year-on-year decline. The total exports (goods and services) also declined by 2.1 percent to $67.05 billion, as per government data.
The official addressed concerns regarding the widening import bill, stating that an expanding economy requires more inputs. As a result, higher imports should be viewed in the context of stronger domestic demand. India's merchandise exports rose 13.8 percent year-on-year to $43.56 billion in April, while total exports, including services, increased by 13.6 percent to $80.8 billion.
| Sector | April 2025 Exports (Year-on-Year Growth) |
|---|---|
| Petroleum Products | 34.7% ($9.59 billion) |
| Electronic Goods | 40.3% ($5.18 billion) |
| Engineering Goods | 8.8% ($10.35 billion) |
Gains across key export sectors drove the strong April performance. The commerce ministry also identified meat, dairy, and poultry products, as well as drugs and pharmaceuticals, as major contributors to the growth during the month.
A relatively weaker rupee may have supported export competitiveness and boosted realisations for exporters. However, April's strong export performance was accompanied by a widening trade deficit. India's merchandise trade deficit expanded to $28.4 billion in April, as imports rose sharply by 19.1 percent year-on-year to $65.0 billion, driven by higher purchases of crude oil, gold, and electronic goods.
The official did not disclose the exact export figures for May. Official trade data for May is expected to be released later this month.
Read also: Consumers Reevaluate Spending Amid Rising Inflation and Labor Market Concerns
Investor Takeaway
India's exports continue to show strong growth, driven by a secular trend across sectors.
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