New Delhi, June 17 -- India's merchandise exports contracted by 2.17 percent in May 2025 to USD 38.73 billion, primarily due to a decline in global crude oil prices, according to data released by the Ministry of Commerce.

Imports also saw a reduction, falling by 1.6 percent to USD 60.61 billion, largely driven by lower inbound shipments of petroleum, coal, and gold.

As a result, the merchandise trade deficit narrowed significantly to USD 21.88 billion in May, down from USD 26.42 billion in April and marginally lower than the USD 22 billion recorded in May 2024.

Despite the overall dip in outbound shipments, exports to the United States rose sharply by 16.9 percent to USD 8.83 billion.

This surge was attributed to Indian exporters fron...