India’s merchandise exports registered strong growth in May, increasing 18 per cent year-on-year to USD 45.2 billion, according to data released by the Ministry of Commerce and Industry.

Imports also recorded robust growth during the month, rising 20.62 per cent to USD 73.41 billion, resulting in a trade deficit of USD 28.21 billion.

During the first two months of the current financial year, merchandise exports reached USD 88.91 billion, reflecting a 16.09 per cent increase compared with the corresponding period of the previous year.

The healthy export performance indicates continued strength in India's external trade sector, although higher import growth widened the trade gap during the month. The latest figures suggest sustained demand for Indian goods in global markets while reflecting increased domestic demand for imported products and raw materials.