India's export surge reflects integration into global value chains: Experts

The 18 per cent growth in the country's merchandise exports reflects the increasing integration of Indian companies into global value chains and the diversification of export markets, experts said on Tuesday.

India's exports climbed to a six-month high of 18 per cent to $45.2 billion in May, while the trade deficit widened to $28.21 billion, driven by increased imports of petroleum products amid higher crude oil prices.

The increase in the outbound shipments is a reflection of the growing competitiveness of Indian industry and the confidence that global markets continue to place in Indian products, Sanjay Budhia, CII's Co-chair National Committee on Exports and MD, Patton International Ltd, said.

He said that the healthy growth in exports during the first two months of 2026-27 also highlights the increasing integration of Indian enterprises into global value chains and their ability to respond to evolving international demand.

During April-May 2026-27, exports rose 16.09 per cent to $88.91 billion, while imports jumped 15.14 per cent to $145.35 billion. The trade deficit stood at $56.44 billion during the period.

"Continued focus on market access, trade facilitation, and export competitiveness will be essential to sustain this momentum and further strengthen India's position in global trade," Budhia said.

Sharing similar views, Federation of Indian Export Organisations (FIEO) President SC Ralhan said India's leading export destinations during AprilMay 2026-27 included the UAE, Singapore, China, Netherlands, United Kingdom, Bangladesh, Tanzania, Germany and Saudi Arabia.

He said the ongoing infrastructure improvements, digital trade facilitation measures, Free Trade Agreements (FTAs), production-linked incentive schemes and proactive export promotion efforts by Indian Missions abroad will further strengthen the country's export competitiveness.