India’s merchandise exports rose 18% year-on-year to $45.2 billion in May, the highest monthly growth in six months, even as the trade deficit widened to $28.21 billion due to higher imports of petroleum products amid a surge in crude oil prices.The trade gap, however, narrowed marginally from $28.38 billion in April. It stood at $21.88 billion in May last year, PTI reported.Imports increased 10% year-on-year to a three-month high of $73.41 billion in May, widening the deficit compared with a year ago.Commerce Secretary Rajesh Agrawal said exports were holding up well despite geopolitical uncertainties.The May figures “are one of the highest monthly export data”, he said, adding that “going by the trend, this year will be good for exports”.Electronic goods, petroleum products, engineering goods and pharmaceuticals were among the key drivers of export growth.During April-May 2026-27, exports rose 16.09% to $88.91 billion, while imports increased 15.14% to $145.35 billion. The trade deficit during the period stood at $56.44 billion.Gold imports during the first two months of the fiscal surged 60% to $9.04 billion, while crude oil imports rose 16.5% to $41.3 billion.Agrawal said exports to West Asia had nearly matched last year’s levels despite disruptions in the region.India’s exports to West Asia stood at $5.30 billion in May compared with $5.38 billion in May 2025. India has been using the Omani ports of Duqm, Sohar and Salalah to facilitate shipments to the region.The trade data comes as US President Donald Trump announced that the US and Iran had finalised an agreement to end their 107-day conflict, which triggered a global energy crisis. The peace agreement is scheduled to be signed on June 19 in Switzerland.The US-Iran conflict had severely disrupted the movement of cargo vessels in international waters, particularly through the Strait of Hormuz.Meanwhile, according to government estimates, services exports stood at $36.76 billion in May, while services imports were valued at $19.06 billion.