Merchandise exports in May rose by 21% to $38.9 billion, while the trade deficit ballooned to a record $24.3 billion, according to the government data released.
Imports during May 2022 grew by 62.8% to $63.2 billion. The trade deficit stood at $6.5 billion in the same month last year. Cumulative exports in April-May 2022-23 rose by about 25% to $78.7 billion. Imports in April-May 2022-23 increased 45.4% to $123. 4 billion. The trade deficit during the first two months of this fiscal widened to $44.7 billion against $21.8 billion in the year-ago period.
ICRA chief economist Aditi Nayar said mild sequential dip in non-oil exports amid a sharp jump in gold imports widened India’s merchandise trade deficit to a massive $24 billion in May 2022.