The recovery in shipment volume to West Asia after two months of decline and the high value of petroleum product shipments helped merchandise exports grow at the fastest rate in six months in May. Shipments rose 18% to $45.2 billion, and with the war in the region winding down prospects for the rest of the year look promising, government officials and trade circles feel.
Exports to West Asia, which had fallen sharply to $2.62 billion in March as the war began, returned to last year’s level of $5.3 billion in May. “The May numbers are one of the highest monthly export data. Going by the trend, this year will be good for exports,’ Commerce Secretary Rajesh Agrawal said.
Imports in May grew 20.6% on year to $ 73.41 billion due to high crude oil prices. Trade deficit touch $28.21 billion, slightly less than $28.38 billion in April. May trade deficit was still higher than $22.5 billion in the year-ago month.
Engineering sector that accounts for 27% of the exports grew a solid 24.4% on year to $ 12.3 billion in May. Petroleum product exports were up 54.9% to $8.4 billion, a direct beneficiary of high international crude oil prices. Electronics exports too grew at a healthy rate of 11.6% to $ 5 billion.
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Along with exports, imports from West Asia also recovered during May. Traders are using alternate routes to get to the key markets of the region. Ports of Duqm, Sohar, and Salalah in Oman outside the conflict zone are being used to land goods for onward transport by land.
Exports to the US were down by 0.1% to $8.8 billion. This was, however, on a high base caused by frontloading of exports to that country in the April-June quarter of 2025 to beat the additional tariffs announced by US President Donald Trump.
UAE was back to being the second biggest market with exports growing 3.18% year-on-year to $3.06 billion. Other growth markets for exports were Singapore (69%), China (24.8%), Tanzania (196.9%), South Africa (116.2%) Sri Lanka (150%), Korea (71.1%) and Italy (87.5%).
Pharmaceutical exports were up 6.1% to $2.6 billion in May while chemical exports grew 12.7% to $2.7 billion. Gems and Jewellery exports were up 6.6% to $2.5 billion.
The import bill in May was inflated as petroleum imports grew 53.8% to $22.6 billion, while electronics imports were up 35.5% to $X billion. Gold imports were up 33.9% to $3.4 billion despite higher duties. Silver imports, however, crashed 86.6% to $75.5 million.
During April-May, exports rose 16.09% to $88.91 billion, while imports jumped 15.14% to $145.35 billion. The trade deficit stood at $56.44 billion.
Services exports stood at $ 36.76 billion in May, up 13.2% on year. Services imports were $ 19.06 billion, up 14.1%.
TOPICSECONOMYexportsThis article was first uploaded on June sixteen, twenty twenty-six, at fourteen minutes past one in the night. © IE Online Media Services (P) Ltd