Exports grew 15.5% in May, while imports rose 56.1% to above $60 billion
Exports grew 15.5% in May, while imports rose 56.1% to above $60 billion
India’s trade trade deficit widened to a monthly record of $23.33 billion in May, as exports rose 15.5 per cent to $37.3 billion, while imports rose 56.1% to $60.62 billion, according to preliminary data from the Ministry of Commerce and Industry. The previous highest monthly trade deficit stood at $22.91 billion in November.
Goods exports contracted 7.2% from April’s outbound trade of $40.19 billion, resulting in a widening trade trade deficit for the first two months of 2022-23 to $41.73 billion. The figure for April-May 2021 was $ 21.82 billion.
While petroleum exports, which grew 52.7% from May 2021, electronics (41.5%) and readymade textile garments (22.9%) led the growth in exports last month, the overall growth rate was around 8.1% if petroleum exports are excluded. half the speed.
This is the third month in a row that India’s goods imports have crossed $60 billion, due to rising commodity and oil prices amid the Russia-Ukraine conflict. Gold imports rose nearly nine-fold year-on-year to surpass $5.8 billion, and more than triple April’s $1.7 billion.
Aditi Nair, Chief Economist, ICRA, said, “With the base effects increasing, the pace of growth of goods exports and then subsequently, imports is likely to moderate, while commodity prices show a renewed upward trend. Is.” Hindu. “We believe the trade trade deficit will be between $20 billion and $25 billion for most of the months of 2022-23,” he said. ,
Petroleum imports nearly doubled to $18.1 billion, but were down 10.3% from April’s bill of more than $20 billion. Coal imports more than doubled from May 2021 levels to $5.33 billion, and were up 8% sequentially.
Excluding petroleum, imports stood at $42.48 billion, showing a low growth rate of 44.7%. If gold, silver and precious metal imports are also not included, imports grew at a slower rate of 27.2% to $33.6 billion.
Mahesh Desai, Chairman, Engineering Exports Promotion Council, said, “In the short and medium term, there is an apprehension of slowdown in demand in advanced economies, which could potentially impact the pace of exports.”
Last month, rating agency ICRA projected a record trade trade deficit of $250-255 billion for 2022-23, with export growth slowing to around 9% during the year and imports expected to grow by 16% Because domestic demand is expected to outpace external demand. ,