NEW DELHI: India’s Trade deficit stood at to $6.32 billion in May, an eight month low, due to the low volume of imports. According to data released by Ministry of Commerce and Industry, exports remained above the $30 billion for the third month in row at $32.2 billion, driven by robust growth in petroleum, gems and jewellery, and engineering goods, which grew by 200 per cent, 179 per cent and 53 per cent respectively. This was 67.39 per cent more than what was recorded during the same month last year.
The fact that the growth came from labour-intensive sectors such as Gems & Jewellery, Engineering goods, Cotton yarn, handloom products, Marine products, Spices, Carpets, and Man-made yarn augurs well for the job scenario. Out of 30 major product groups, 19 have either recorded impressive, 3-digit, export growth figures.
Imports, however, fell to their lowest in six months at $38.5 billion, but were 68.54 per cent more than May 2020. Oil imports rose to $9.45 billion. “India is thus a net importer in May 2021 with a trade deficit of $6.32 billion, an increase of 74.69 per cent over trade deficit $3.62 billion in May 2020 and reduction by 62.49 per cent over trade deficit $16.84 billion in May 2019,” the ministry said.
Exporters said that growing by about 8 per cent even on the base of May 2019, last month’s trends reflect a positive trajectory for the sector. The gradual opening up of markets is also expected to push exports up.
“The continuing impressive growth in exports reiterate our assessment that the order-booking position of our exporters is not only extremely good, but that the gradual opening up of major global markets and improvement of situation in India is expected to push up export growth,” Sharad Kumar Saraf, President, FIEO said.
$38.5bn Value of imports into India in May
$32.2bn Exports into India in May
$6.32bn Trade deficit in May