Page 9 - FIPI - Policy & Economic Report May 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

? The growth in merchandise exports was primarily driven by strong performance in petroleum
products, electronic goods, engineering goods, meat, dairy & poultry products, and drugs &
pharmaceuticals.

? Petroleum product exports recorded a sharp increase of 34.66 %, rising from US$7.12 billion in
April 2025 to US$9.59 billion in April 2026, supported by higher global prices and export volumes.

? India's merchandise trade deficit narrowed significantly to $7.81 billion, down from $11.16 billion
in the previous year. This $3.35 billion reduction was driven by the energy sector, with refined
petroleum exports expanding by $2.47 billion (from US$7.12 billion in April 2025 to US$9.59
billion in April 2026) to account for nearly 74% of the total improvement in the nation’s trade
balance.

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