India’s total merchandise and services exports reached a six-month high of $45.2 billion in May 2026, representing an 18% year-on-year growth. Despite acute geopolitical friction, cumulative exports for the April–May 2026 period reached $88.91 billion. Concurrently, total imports surged by 10% to a three-month high of $73.41 billion, driven heavily by an escalating crude oil import bill and an unexpected 60% surge in gold imports. This import acceleration widened the merchandise trade deficit to $28.21 billion for the month, although it registered a marginal month-on-month recovery compared to April’s $28.38 billion. The growth was primarily spearheaded by sectors such as engineering goods, electronic items, and petroleum products.