India’s merchandise exports recorded a double-digit growth during the first two months of the current financial year, signalling resilience in overseas trade despite global economic uncertainties and geopolitical disruptions, a senior government official said on Monday. The Ministry of Commerce and Industry is scheduled to release the official trade data for May on June 15. The official, however, indicated that exports during April-May 2026 remained firmly in positive territory, supported by strong shipments of petroleum products and improved demand from key international markets.
India’s exports had already posted a robust performance in April 2026, rising by 13.78 percent year-on-year to US$ 43.56 billion. The figure marked the highest monthly outbound shipment value in more than four years, underlining the strength of India’s export sector amid elevated global commodity prices and improving trade momentum.
Petroleum products leadThe sharp rise in exports during April was largely driven by petroleum product shipments following a sustained increase in global crude oil prices. Escalating geopolitical tensions in the Middle East and disruptions in major shipping routes pushed crude oil prices sharply higher, thereby increasing the value of petroleum exports from India. Higher realizations from refined petroleum product exports significantly contributed to the overall rise in outbound shipments.
In April, petroleum products exports increased by 34.66 percent from US$ 7.12 billion in April 2025 to US$ 9.59 billion, while non-petroleum exports valued at US$ 33.97 billion registered an increase of 9.01 percent as compared to US$ 31.16 Billion in the corresponding month of the previous year. Major drivers of merchandise exports growth in April 2026 include petroleum products, electronic goods, engineering goods, meat, dairy & poultry products and drugs & pharmaceuticals.
Surge in importsHowever, the increase in exports was accompanied by a notable rise in imports, leading to a wider trade deficit. India’s trade deficit widened to a three-month high of US$ 28.38 billion in April as imports surged due to higher crude oil purchases and increased inbound shipments of essential commodities and industrial raw materials.
Analysts said that while a widening trade deficit remains a concern, the strong export growth reflects healthy external demand and improved competitiveness of Indian goods in global markets. India’s export basket has increasingly diversified over the years, with sectors such as engineering goods, electronics, pharmaceuticals, chemicals, textiles, and petroleum products continuing to play a crucial role in driving overseas shipments.
The government has been actively working to strengthen India’s export ecosystem through policy reforms, trade facilitation measures, and free trade agreements (FTAs) with strategic global partners. According to the official, the Commerce Ministry is also preparing to launch a major outreach initiative to spread awareness about India’s expanding network of FTAs and their benefits for businesses and exporters.
As part of this effort, the ministry plans to hire around 1,000 professionals from across the country to disseminate information related to free trade agreements being negotiated and implemented by India. The recruitment process is currently underway. “We need people from different languages,” the official said, emphasizing the government’s intent to ensure that information regarding trade agreements reaches businesses, exporters, and stakeholders in various regions of the country in their native languages.
Bilateral trade and FTAThe move is aimed at improving awareness among small and medium enterprises (SMEs), exporters, industry associations, and local businesses regarding market access opportunities, tariff concessions, export procedures, and investment benefits arising from India’s trade agreements. India has significantly accelerated its trade diplomacy efforts over the past few years in a bid to expand export opportunities and integrate more deeply with global supply chains. The country has already implemented free trade agreements with several key economies and regional blocs, including the United Arab Emirates (UAE), Oman, Australia, the European Free Trade Association (EFTA) bloc, and Mauritius.
In addition, India has finalized trade agreements with the United Kingdom, New Zealand, and the European Union (EU), marking a major milestone in its global trade strategy. These agreements are expected to provide Indian exporters with preferential market access, lower tariffs, and improved competitiveness in some of the world’s largest consumer markets. Industry experts believe that the implementation of these FTAs could provide a substantial boost to sectors such as textiles, leather, gems and jewellery, pharmaceuticals, automobiles, engineering goods, and agricultural products. Easier market access and reduced trade barriers are likely to create new opportunities for Indian manufacturers and exporters over the medium term.
Ease of doing businessThe government is also focusing on improving logistics infrastructure, reducing transaction costs, and promoting ease of doing business to strengthen India’s export competitiveness. Initiatives such as the Production-Linked Incentive (PLI) schemes, digital trade facilitation measures, and investments in port connectivity are expected to support long-term export growth. Despite persistent global challenges, including geopolitical tensions, supply chain disruptions, and slowing growth in some advanced economies, India’s export outlook remains relatively optimistic. Strong domestic manufacturing activity, rising global demand for refined petroleum products, and expanding trade partnerships are expected to support export performance in the coming months.
Economists, however, cautioned that rising crude oil prices could continue to exert pressure on India’s import bill and current account balance. Since India imports a significant portion of its crude oil requirements, any sustained increase in energy prices could widen the trade deficit further and add pressure on inflation and the rupee. Nevertheless, the double-digit export growth recorded during April-May indicates that India’s external trade sector has maintained momentum despite global volatility. With new trade agreements, diversified export markets, and government-backed export promotion initiatives, India is positioning itself to strengthen its presence in global trade and enhance its role as a major manufacturing and export hub.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
