India's trade deficit grew 99.61 per cent to $6.28 billion during May 2021 against a deficit of $3.15 billion in May 2020, the Union Ministry of Commerce & Industry data released on Tuesday said. Exports in May 2021 stood at $32.27 billion compared to $19.05 billion in May 2020, exhibiting a positive growth of 69.35 per cent, driven by healthy growth in sectors such as engineering, petroleum products and gems and jewellery, the data showed.
In rupee terms, exports were at Rs 2,36,426.16 crore in May 2021, as compared to Rs 1,44,166.01 crore in May 2020, recording a growth of 64 per cent. As compared to May 2019, exports in May 2021 exhibited a positive growth of 8.11 per cent in dollar terms and 13.53 per cent in rupee terms, the ministry said.
India's overall exports (merchandise and services combined) in April-May 2021 are estimated to be $98.29 billion, up 56.94 per cent over the same period last year. The overall imports in April-May 2021 grew 77.82 per cent to $104.14 billion over the same period last year. Oil imports in May 2021 stood at $9.45 billion, 171.1 per cent higher in dollar terms as compared to $3.49 billion in May 2020.
Gold imports increased to $679 million during the month under review from $76.31 million in May 2020. Exports of engineering, petroleum products and gems and jewellery in May stood at $8.64 billion, $5.33 billion and $2.96 billion, respectively.
"India's exports for the period April-May 2021 outperformed the level of exports witnessed during the corresponding period of not only the 2020, but also that of 2019 (April-May). In fact, the April-May 2021 exports have grown 12.2 per cent over the export level of April-May 2019. On the other hand, though the imports in Apr-May 2021 have grown 114 per cent over the corresponding value for the previous year, in absolute terms it is lower than the import of $86.75 billion witnessed during April-May 2019," said Prahalathan Iyer, Chief General Manager, Research and Analysis, India EXIM Bank, adding that this could be attributed to the lockdown restrictions in many parts of the country, and low consumer demand.
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