India’s export rose 2.77% in May, trade deficit narrowed

India’s overall exports, comprising both merchandise and services, rose 2.77 percent year-on-year in May 2025 to $71.12 billion, up from $69.20 billion in the same month last year, according to data released by the Commerce Ministry on Monday. While merchandise exports dipped slightly to $38.73 billion from $39.59 billion, services exports grew to $32.39 billion from $29.61 billion in May 2024. On the import side, India’s total goods and services imports in May stood at $77.75 billion, slightly lower than $78.55 billion a year ago. As a result, the trade deficit narrowed to $6.62 billion in May 2025, compared to $9.35 billion in May 2024.
For the first two months of the current financial year (April–May 2025), India’s total exports reached approximately $142.43 billion, marking a 5.75 percent year-on-year increase from $134.69 billion. Imports during the same period rose 6.52 percent to $159.57 billion from $149.81 billion in April–May 2024. However, the cumulative trade deficit for April–May widened slightly to $17.14 billion from $15.12 billion in the same period last fiscal. The government attributed the growth in exports to a series of policy initiatives, including the Production Linked Incentive (PLI) scheme, designed to boost manufacturing competitiveness, attract foreign investment, and deepen India’s integration into global supply chains.