India's trade surplus shifts towards Asia and Africa in early FY27
New Delhi,Jun 16, 2026
India's trade balance turned favourable with several Asian and African economies in April-May, even as surpluses with traditional partners such as the US narrowed
India’s latest trade data show a geographical realignment in the nation’s trade balance. While India’s trade surplus with traditional partners such as the US and the Netherlands narrowed in the first two months of FY27, the trade balance with regions such as Asia and Africa swung decisively into surplus from deficits recorded a year ago.
As goods imports from the US rose nearly 55 per cent year-on-year (YoY) to a record high of $5.87 billion in May and exports remained largely unchanged, India’s trade surplus with the country moderated to $6.15 billion in the first two months of the current financial year from $7.87 billion in the corresponding period a year ago.
On the other hand, India’s exports to Singapore rose sharply, taking the trade balance to a surplus of $665 million in April-May from a deficit of $1.3 billion in the year-ago period. A similar reversal played out with South Africa, where the trade balance flipped from a deficit of $17 million last year to a surplus of $492 million.
Even more dramatic shifts were visible within the immediate neighbourhood and in Africa. India’s trade surplus with Tanzania ballooned to $1.71 billion from a mere $77 million, propelled by a 172 per cent surge in exports. Sri Lanka followed a similar trajectory, where exports nearly tripled, pushing India’s trade surplus to more than $1 billion from $404 million a year earlier.
However, the geographical shift was not entirely uniform. India’s trade deficit with the United Arab Emirates (UAE) fell to $4.53 billion from $6.18 billion as trade has yet to fully recover following disruptions caused by the West Asia conflict. Meanwhile, India’s deficit with China worsened significantly, crossing the $20-billion mark in the first two months of the financial year.
Looking at Europe, demand presented a mixed picture. Although the surplus with the Netherlands shrank, exports to Italy and Spain surged more than 40 per cent, comfortably expanding India’s surplus margins across southern Europe.
[The Business Standard]
