Exports rise 20.55% to $38.94 bn in May, trade deficit at $24.29 bn

India's merchandise exports in May saw a 20.55 per cent growth to $38.94 billion, while the trade deficit rose to $24.29 billion, according to the government data released on Wednesday. The merchandise exports grew $32.30 billion, while the trade deficit stood $6.53 billion in the same month last year. 

Imports in the month of May grew by 62.83 per cent to $63.22 billion, the data showed. Services export, however, saw an annual growth of 30.32 per cent from $17.86 billion in May last year to $23.28 billion in this year.

Overall exports crossed $62 billion-mark in May to settle at $62.21 billion, logging an on-year growth of 24.03 per cent from $50.16 billion in the same period last year. Overall exports in April –May 2022 stood at $45.87 billion, exhibiting 27.71 per cent on-year growth from $35.92 billion in the same period last year.

Non-petroleum and non-gems and jewellery exports in May this year stood at $30.39 billion, logging a 13.10 per cent growth from $24.04 billion in the same period last year. Non-petroleum and non-gems and jewellery exports stood at $55.60 billion in April-May 2022 versus $47.76 billion in the same period last year, a growth of 16.42 per cent.

On the other hand, overall imports went up 59.19 per cent on-year from $48.78 billion in May 2021 to $77.65 billion in May 2022. Overall imports stood at $151.89 in April-May 2022 versus $104.44 billion in the corresponding period last year, a growth of 45.44 per cent.

Aditi Nayar, Chief Economist ICRA said, "The mild sequential dip in non-oil exports amidst a sharp jump in gold imports widened India's merchandise trade deficit to a massive US$24 billion in May 2022. Based on the expectation that gold imports may reduce after the Akshaya Tritiya season, the trade deficit may demonstrate some moderation in the current month. Based on the performance in April-May 2022, we foresee the current account deficit to widen to US$ 26 billion in Q1 FY2023, from US$ 23 billion in Q3 FY2022 and an expected US$16 billion in Q4 FY2022."