Merchandise Exports Surge in April, Marking Multi-Year High as India's Trade Resilience is Confirmed

Merchandise Exports Surge in April, Marking Multi-Year High as India's Trade Resilience is Confirmed​

Strong Performance Pulls Merchandise Exports Up 13.78 Percent in April​

India's merchandise exports demonstrated significant resilience during the first two months of Fiscal Year 2026. A senior government official reported that the likely growth rate for these exports stood at around 15 percent year-on-year across April and May. This strong performance indicates underlying demand strength despite uneven global market conditions.

For context, excluding petroleum products due to their higher prices, the growth rate was stated to be 11 percent. These figures suggest that core non-commodity sectors are contributing substantially to India's trade momentum in early FY26.

Merchandise exports reached a multi-year high of $43.56 billion in April. This impressive uptick translates to a robust 13.78 percent increase year-on-year. The performance reinforces earlier expectations for sustained export growth at the start of the fiscal year.

Key Drivers Behind Export Growth​

The strong rise seen in April was attributed to several key sectors performing exceptionally well. Specifically, petroleum products and electronics were major contributors to the overall merchandise trade volume. Engineering goods also played a supportive role in driving this healthy growth trajectory.

Elevated crude oil prices provided a tailwind effect that bolstered the exports of these related commodities. This combination of commodity price movements alongside steady external demand fueled the significant rise in April's export figures.

Comparison with Prior Period and Outlook​

While April marked an extremely strong performance, previous monthly data offers a mixed picture. In May 2025, India's merchandise exports amounted to $38.88 billion, showing a decline of 2 percent year-on-year. This contrasts sharply with the record high achieved in April.

Total exports (encompassing both goods and services) declined by 2.1 percent to $67.05 billion in May 2025, according to available government data. This suggests that while merchandise trade saw a temporary surge, overall export activity experienced a slight dip.

The Commerce Ministry is anticipated to release the official trade data for May 2026 on the 15th of this month. This forthcoming report will provide further clarity into India's evolving global market position and trends in merchandise trade.