India’s merchandise exports increased by 9.1% to USD 38.13 billion in May, despite a trade deficit widening to a seven-month high of USD 23.78 billion, according to government data.
Healthy growth in sectors such as engineering, electronics, pharmaceuticals, textiles, and plastics contributed to the rise in exports, despite global economic uncertainties.
Imports also rose by 7.7% to USD 61.91 billion, primarily due to an increase in crude oil imports, which went up by 28% to USD 20 billion in May. However, gold imports decreased slightly to USD 3.33 billion.
In April-May, exports rose by 5.1% to USD 73.12 billion and imports increased by 8.89%.
Commerce Secretary Sunil Barthwal expressed optimism regarding the trade sector, mentioning that the positive trend in exports is expected to continue. He also noted that the trade deficit is not a major concern as long as there is foreign investment and growth in services exports.
The estimated value of services export in May is USD 30.16 billion, while imports of services are estimated at USD 17.28 billion.
India’s exports to its top five destinations – the US, the Netherlands, UAE, Malaysia, and the UK – showed healthy growth in May.
