India records $28 billion trade deficit in May; softer oil prices may ease pressure: Report
India’s merchandise trade deficit stood at $ 28.21 billion in May 2026, with lower crude oil prices and higher duties on gold imports likely to ease pressure on the import bill in the coming months, according to a report by Dolat Capital cited.
According to ANI, the report noted that petroleum imports surged to $ 22.7 billion in May 2026, up from $ 14 billion a year earlier, even as non-petroleum exports rose to $ 70.7 billion during April-May FY27 from $ 64 billion in the corresponding period last year. Non-petroleum, non-gems and jewellery exports also increased to $ 65.9 billion from $ 59.2 billion.
The report said India’s non-petroleum imports remained strong at $ 104.1 billion compared to $ 90.8 billion a year ago, driven by demand for electronics, machinery, capital goods and industrial inputs, reflecting continued momentum in domestic investment and consumption.
Dolat Capital stated that ‘merchandise imports surged to USD 73.41 billion (+20.62% YoY) in May 2026 and cumulatively (Apr-May '26) reached USD 145.35 billion (+15.14% YoY).’
On the export front, the report noted that ‘merchandise exports grew to USD 45.20 billion (+18.00% YoY) in May 2026 and cumulatively (Apr-May '26) reached USD 88.91 billion (+16.09% YoY).’
Dolat Capital, as quoted by the news agency, said export growth is becoming increasingly broad-based across products and geographies, reducing dependence on a limited set of commodity segments. The report added that stronger trade engagement with Asia, the Middle East, Africa and other emerging markets is helping diversify geopolitical risks and improve resilience against regional disruptions.
Looking ahead, the report said, “softer crude oil prices amid easing geopolitical tensions in West Asia could lower the oil import bill and help narrow the trade deficit.”
It further noted that petroleum product exports are likely to benefit from a favourable excise duty structure and pent-up demand, while higher duties on gold imports could curb non-essential imports.
“Together, these factors support a more balanced and resilient external sector outlook, with trade increasingly anchored by manufacturing competitiveness, investment demand and diversified global partnerships,” the report said.
According to ANI, the report noted that petroleum imports surged to $ 22.7 billion in May 2026, up from $ 14 billion a year earlier, even as non-petroleum exports rose to $ 70.7 billion during April-May FY27 from $ 64 billion in the corresponding period last year. Non-petroleum, non-gems and jewellery exports also increased to $ 65.9 billion from $ 59.2 billion.
The report said India’s non-petroleum imports remained strong at $ 104.1 billion compared to $ 90.8 billion a year ago, driven by demand for electronics, machinery, capital goods and industrial inputs, reflecting continued momentum in domestic investment and consumption.
Dolat Capital stated that ‘merchandise imports surged to USD 73.41 billion (+20.62% YoY) in May 2026 and cumulatively (Apr-May '26) reached USD 145.35 billion (+15.14% YoY).’
On the export front, the report noted that ‘merchandise exports grew to USD 45.20 billion (+18.00% YoY) in May 2026 and cumulatively (Apr-May '26) reached USD 88.91 billion (+16.09% YoY).’
Dolat Capital, as quoted by the news agency, said export growth is becoming increasingly broad-based across products and geographies, reducing dependence on a limited set of commodity segments. The report added that stronger trade engagement with Asia, the Middle East, Africa and other emerging markets is helping diversify geopolitical risks and improve resilience against regional disruptions.
Looking ahead, the report said, “softer crude oil prices amid easing geopolitical tensions in West Asia could lower the oil import bill and help narrow the trade deficit.”
It further noted that petroleum product exports are likely to benefit from a favourable excise duty structure and pent-up demand, while higher duties on gold imports could curb non-essential imports.
“Together, these factors support a more balanced and resilient external sector outlook, with trade increasingly anchored by manufacturing competitiveness, investment demand and diversified global partnerships,” the report said.
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