India’s trade deficit reached $28.21 billion in May, only a marginal improvement from the $28.38 billion recorded in April. Despite higher exports of refined petroleum products, the cost of crude imports nearly doubled year-over-year. Data from Dolat Capital indicates that petroleum imports reached $22.7 billion last month, a sharp climb from the $14 billion spent during the same period in 2025.

Commerce Secretary Rajesh Agrawal expressed optimism that the diplomatic breakthrough would resolve systemic economic pressures, while Global Trade Research Initiative founder Ajay Srivastava noted the agreement provides immediate relief from the instability of West Asian supply chains. For a nation that imports over 85% of its oil, the potential stabilization of the Strait of Hormuz is essential. Throughout the crisis, New Delhi scrambled to protect its currency and growth by diversifying its energy portfolio, significantly increasing intake of Russian crude while exploring new supply routes from Brazil and Venezuela to mitigate reliance on the Middle East.