India’s Export Surge: Record $45 Billion in May 2026 Driven by Electronics and Green Hydrogen

India’s trade landscape reached a significant milestone in May 2026, with merchandise exports touching a record $45 billion. According to data released by the Ministry of Commerce, this represents a robust 14% year-on-year growth. The surge is primarily attributed to the maturation of the Production Linked Incentive (PLI) 2.0 schemes and a strategic pivot in India’s export basket toward high-value, technology-intensive, and sustainable commodities.

A standout feature of this growth is the electronics sector, which has benefited immensely from the PLI 2.0 framework. India has transitioned from being a net importer of electronics to a significant global supplier of smartphones and high-end hardware. This shift underscores the success of the 'Make in India' initiative in integrating domestic manufacturing with global value chains.

Furthermore, May 2026 marked a historic turning point with India’s first significant commercial export of Green Hydrogen to the European Union. This development signals India’s emergence as a global hub for green energy. The National Green Hydrogen Mission, launched earlier in the decade, has clearly begun to yield dividends, positioning India as a reliable partner in the global energy transition. By exporting Green Hydrogen, India is not only diversifying its trade portfolio but also proactively addressing the challenges posed by international carbon regulations, such as the EU’s Carbon Border Adjustment Mechanism (CBAM).

From a policy perspective, this export performance reflects the synergy between industrial policy and trade strategy. The focus on 'Value over Volume' is evident as the share of traditional commodities decreases in favor of engineering goods and renewable energy components. However, to sustain this momentum, India must continue to address structural bottlenecks, including logistics costs and the need for deeper Free Trade Agreements (FTAs) with major markets.