By Global Consultants Review Team
India’s trade in May 2025 remained steady, showing resilience even as global conditions stayed uncertain. According to trade experts, total exports, including both goods and services, grew by 2.8% to USD 71.12 billion, compared to USD 69.20 billion in May 2024.
The rise in exports was primarily due to a strong performance in services, including software, consultancy, and financial services. However, merchandise exports slightly fell to USD 38.73 billion. FIEO President S C Ralhan said exporters are coping well with the tough global environment and are supported by effective policies.
On the import side, goods imports fell to USD 60.61 billion. Overall imports (goods and services) dropped slightly to USD 77.75 billion, down from USD 78.55 billion a year ago. Ralhan believes India can see stronger export growth in the second half of 2025 if global conditions improve. Pankaj Chadha, Chairman of EEPC India, noted that while engineering exports dipped by 0.8% to USD 9.89 billion, the sector is holding up despite international challenges.
Experts warned, however, that global tensions, especially the ongoing Israel-Iran conflict, could raise input costs and impact trade routes like the Strait of Hormuz. Aditi Nayar, Chief Economist at ICRA, said India’s trade deficit narrowed to USD 21.9 billion in May, down from USD 26.4 billion in April. This may help reduce the current account deficit to around USD 13 billion for Q1 of FY2026. She added that the fall in oil and gold imports also helped to control the trade gap. Non-oil exports, including electronics, garments, and chemicals, continued to grow, which gave a boost to India’s trade performance.
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