India's Overseas Trade Shrinks in May; Exports Decline 3%

Geopolitical tensions and policy uncertainty around trade tariffs have impacted India's merchandise trade in May as both exports and imports recorded a decline.

- Dipak Mondal @New Delhi

Goods exports fell 2% year-on-year in May to $38.73 billion compared to $39.59 billion a year ago. Imports also declined by 1.7% to $60.61 billion during the month from $61.68 billion in the same month a year ago. As a result, the trade deficit declined from $22.09 billion in May 2024 to $21.88 billion in May 2025. Merchandise trade deficit in April this year was $26.4 billion.

The Commerce Ministry has attributed the fall in goods exports to a decline in exports of petroleum products, which fell 30% year-on-year to $5.6 billion.