India's Exports Face Challenges Amid Global Uncertainties

India's export sector witnessed a downturn in May, marking a 2.17% decline compared to the previous year, as per the latest government figures. This decrease, fueled by reduced petroleum shipments, led to a narrowed trade deficit of USD 21.88 billion for the month.

Government data further disclosed a 1.7% dip in imports due to declining inbound shipments of gold and crude oil. For the cumulative period of April-May 2025-26, exports saw a growth of 3.11%, whereas imports climbed by 8%, narrowing the trade gap to USD 48.33 billion. The current geopolitical tensions, highlighted by the Iran-Israel conflict, are projected to exacerbate these economic challenges.

The commerce ministry is scheduled to convene an inter-ministerial meeting to address potential outcomes from the ongoing conflict. While sectors like rice, iron ore, and petroleum products recorded negative growth, areas such as electronic goods, tea, and chemicals showed promise. Industry leaders remain optimistic, supported by positive growth figures in exports to major global markets and the potential signing of free trade agreements with key partners.

(With inputs from agencies.)