Research Report

Despite the challenges posed by the conflict in West Asia, India’s merchandise exports rose to a 49-month high of $43.6 billion in April 2026, partly benefitting from petroleum shipments owing to higher crude oil prices. Likewise, imports also posted a robust double-digit year-on-year (YoY) growth in the month, aided by the non-oil segment. While India's merchandise trade deficit (MTD) increased mildly in YoY terms, there was a substantial widening in sequential terms to $28.4 billion in April 2026 from $20.7 billion in March 2026, 60% of which was on account of higher gold and net crude oil imports.

MoM growth in imports in April 2026 twice as high as that in exports: Despite the challenges posed by the conflict in West Asia, India’s merchandise exports rose by ~14% YoY and ~12% month-on-month (MoM) to a 49-month high $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. Likewise, merchandise import growth stood at 10% YoY and ~21% MoM amounting to $71.9 billion in April 2026, printing at the second highest-ever monthly level. Consequently, the MTD widened to $28.4 billion in April 2026 from $20.7 billion in March 2026, 60% of which stemmed from higher gold and net crude oil imports.