📷 Image Credits: The Indian Express
New Delhi’s goods exports in May surged by 9.10% year-on-year to $38.13 billion from $34.96 billion in the corresponding month of the previous year. The growth was primarily driven by the robust performance of electronics, petroleum, and engineering goods.
Driven by the resurgence of demand in India’s traditional export markets like Europe and the United States (US), the country witnessed a notable 9% year-on-year increase in goods exports in May. According to data released by the commerce and industry ministry, India’s trade deficit also reached a seven-month high of $24 billion due to elevated oil imports.
Imports showed a comparably slower growth rate of 7.6% in May, rising to $61.91 billion from $57.49 billion in May 2023. The expansion in merchandise trade deficit was primarily attributed to a surge in net oil imports, as highlighted by Aditi Nayar, Chief Economist and Head of Research and Outreach at ICRA.
Furthermore, services exports in May escalated to $30.16 billion, marking an 11% increase from the same month in the previous year. In parallel, services imports rose by 8.81% year-on-year to $17.28 billion, underscoring the positive trajectory of India’s trades.
The exports growth was not limited to goods but extended to various services as well. The rise in overall exports, coupled with substantial progress in goods exports, indicates a favorable scenario as major advanced economies witness a decline in inflation rates. This bodes well for Indian exports, aligning with the enhanced purchasing power in these markets amidst subdued inflationary pressures.
