NEW DELHI: India’s merchandise exports rose 13.8 per cent year-on-year in April to a four-year high of $43.56 billion, according to the commerce ministry data released on Friday, despite supply-chain disruptions linked to the crisis in West Asia. Still, the trade deficit widened to a three-month high of $28.38 billion as imports surged 10 per cent year-on-year to a six-month peak of $71.94 billion, driven by rising inflows of gold and silver.
Commerce Secretary Rajesh Agrawal attributed the export growth to higher commodity prices and Indian industry’s efforts to diversify markets. Exports to China and Singapore witnessed a sharp uptick, but trade with the United Arab Emirates (UAE) came under pressure because of the ongoing blockade of the Strait of Hormuz.
Petroleum products and electronic goods were the main drivers of export growth in April. Petroleum product exports rose 34.7 per cent from a year earlier to $9.59 billion, while electronic goods exports climbed 40.3 per cent to $5.18 billion.
On the import side, gold shipments jumped 81.7 per cent to $5.63 billion in April, while silver imports more than doubled to $411.06 million. The sharp increase is likely to have prompted the government’s decision earlier this week to more than double the import duties on the two precious metals.
Following the duty increase on gold, Agrawal said he expected imports of the yellow metal to decline in the coming months. “Consumption-based usage of gold should go down due to the duty hike,” he told reporters on Friday.
The commerce ministry estimated services exports at $37.24 billion in April, up 13.4 per cent year on year. Services imports were estimated at $16.66 billion, slightly below $16.91 billion in April 2025, leaving India with an estimated services trade surplus of $20.58 billion. The Reserve Bank of India is expected to release final services trade data later this month
The impact of supply-chain disruption stemming from the conflict in West Asia was visible in India’s trade with the United Arab Emirates, with both exports and imports declining by more than 30 per cent in April. India’s crude oil imports, most of which pass through Strait of Hormuz, also fell 10 per cent to $18.63 billion.
The US remained India’s largest export destination in April, although exports rose only marginally to $8.48 billion from $8.38 billion a year earlier. Imports from the US fell 4.7 per cent to $5.27 billion.
Exports to Singapore recorded an unexpected surge, nearly trebling to $3.20 billion in April.
Merchandise exports to China increased 27 per cent to $1.77 billion in April. China also remained India’s largest source of imports, with shipments rising 20.9 per cent to $11.97 billion.
India’s cumulative exports stood at $80.80 billion in the first month of FY27, a year in which the government is targeting total exports of $1 trillion. According to Agrawal, the government is relying on the implementation of recently concluded trade agreements, along with support for exporters under the Export Promotion Mission, to achieve the target.
The commerce department would work with exporters to deliver export growth of 10-15 per cent this year, Agrawal said. “In the uncertain global environment, supply chains normally get recalibrated. We will work with our exporters to see if our quest to diversify to new markets can become part of that shift in supply chains,” he added.
Meanwhile, Federation of Indian Export Organisations President S C Ralhan stressed the need for continued policy support for exporters, stable logistics supply chains and greater market-access initiatives to sustain export momentum in the coming months. “The growth in merchandise exports in April demonstrates the underlying strength and adaptability of Indian exporters amid an increasingly uncertain global trade environment,” Ralhan said.
Source: Business Standard
