India’s April exports rise 14%; trade deficit widens to $28.38 billion

India’s merchandise exports climbed 14% in April, outpacing the increase in imports, led by outbound shipments of engineering goods, petroleum products and electronics goods.

Merchandise exports were estimated at $43.56 billion last month, up from $38.28 billion a year earlier, according to provisional data released by the ministry of commerce and industry on Friday. Imports climbed 10% to $71.94 billion from $65.38 billion. The trade deficit widened to $28.38 billion from $27.1 billion in April last year.

Services exports rose to $37.24 billion in April from $32.85 billion a year earlier, while services imports eased to $16.66 billion from $16.91 billion.

The overall trade deficit, including services, narrowed to $7.81 billion in April from $11.16 billion a year ago. Total exports, including merchandise and services, rose to $80.80 billion from $71.13 billion, while total imports increased to $88.61 billion from $82.29 billion.

“Despite the challenges posed by the conflict in West Asia, total merchandise exports rose to a 49-month high of $43.6 billion in April 2026. This partly benefitted from higher commodity prices, with the value of oil exports rising to a 24-month high of $9.6 billion,” said Aditi Nayar, chief economist at Icra Ltd.

In March, the merchandise trade deficit narrowed to $20.67 billion after exports fell to $38.92 billion and imports declined to $59.59 billion.

Merchandise exports in April were led by engineering goods, which increased 8.76% to $10.35 billion, petroleum products, which rose 34.7% to $9.6 billion, and electronic goods, which were 40% higher at $5.17 billion.

“Geopolitical tensions in different parts of the world have led to massive trade disruptions. But despite these challenges, the Indian engineering sector has shown remarkable resilience,” said Pankaj Chadha, chairman of EEPC India, a trade and investment promotion organization sponsored by the ministry of commerce.

Chadha said that while this is very encouraging, the coming months remain difficult. The engineering sector is witnessing a sharp increase in input costs.

“Besides, logistics costs have skyrocketed. Steel and its products continue to face high tariffs in the US, our biggest export market,” he said.

Among imports, electronic goods rose 38.2% to $12.8 billion, gold climbed 82% to $5.6 billion and electrical and non-electrical machinery increased 13.9% to $5.3 billion. Petroleum, crude and products fell 10% from a year earlier to $18.6 billion.

Higher commodity prices

Nayar of Icra said that while India's merchandise trade deficit increased mildly year-on-year, there was a substantial widening sequentially, 60% of which was on account of higher gold and net crude oil imports. She added that both non-oil exports as well as non-oil, non-gold imports grew at a surprisingly healthy pace last month despite a disruption in shipping, although this may partly reflect higher commodity prices.

“While the hike in customs duty on gold and silver may provide some respite, the merchandise deficit prints are expected to remain elevated in the near term, which is set to weigh on the current account deficit (CAD). Icra projects the CAD to widen to a little over 2.0% of GDP in Q1 FY2027, following the expected seasonal narrowing in Q4 FY2026,” Nayar said.

Madan Sabnavis, chief economist at Bank of Baroda, said the trade data shows resilience for April with exports growing at a faster pace than imports.

“This is significant as it shows war did not impact growth in exports. The fact that petro exports grew reflects the same. Electronics continued to dominate exports. On the imports side, slower growth of crude was accompanied by high growth in gold. The higher price of gold contributed to this,” Sabnavis said. “Imports from Russia grew by 18%, which would be mainly oil. We need to see if this can be maintained in the next few months. Export of services continues to be buoyant and has been a support for the current account.”

Non-petroleum exports rose to $33.97 billion in April from $31.16 billion in April 2025, while non-petroleum imports increased to $53.32 billion from $44.68 billion a year earlier.

Exports excluding petroleum and gems and jewellery stood at $31.64 billion, up from $28.66 billion in April 2025, indicating sustained strength in core manufacturing and agricultural shipments. Non-petroleum and non-gems and jewellery imports increased to $45.87 billion from $39.75 billion.

Export target

India plans to more than double total exports to $2 trillion by FY31 – $1 trillion each in merchandise shipments and services. The government has asked officials to sharpen focus on micro, small and medium enterprises (MSMEs), farm products, certification and promotion of ‘Brand India.’

The country’s merchandise exports rose to $441.78 billion in FY26 from $437.70 billion in the previous year, while imports increased to $774.98 billion from $721.20 billion, taking the annual merchandise trade deficit to $333.2 billion. Total exports, including services at $418.31 billion, were at a record $860.1 billion in FY26.

Reserve Bank of India Governor Sanjay Malhotra has said that recent bilateral and regional trade agreements with major trading partners are expected to boost trade and investment opportunities while widening and diversifying India's trading partners and integrating the country into global value chains.

The US-Iran war, which has led to a blockade of the Strait of Hormuz, has curbed the flow of goods to ports in the Persian Gulf, prompting exporters to opt for alternative trade routes, often at higher costs. India's exporters, particularly MSMEs, have faced rising freight costs and cargo delays across the Gulf region. MSMEs comprise 48% of the country’s exports.