Context:
India’s merchandise exports reached a record $45.2 billion in May 2026, supported by growth in engineering goods, electronics, chemicals, gems and jewellery. However, the overall trade deficit widened as imports of both goods and services grew faster.
Explanation:
- Merchandise exports refer to physical goods sold by India to other countries.
- Merchandise imports refer to physical goods purchased by India from other countries.
- Trade deficit occurs when imports exceed exports.
- India’s exports rose due to growth in engineering goods, electronic goods, chemicals, petroleum products, gems and jewellery.
- Engineering goods form a major export category and include machinery, transport equipment, metals and industrial products.
- Electronic goods exports reflect India’s growing role in mobile phones, components and electronics manufacturing.
- Major export destinations are Singapore, China, U.K., Tanzania, Bangladesh, Germany and South Africa.
- Faster import growth can widen the deficit even when exports rise.
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