India's May Export Surge Amid Mounting Trade Deficit

India's merchandise exports rose by 9.1% to USD 38.13 billion in May despite a widened trade deficit, driven by sectors like engineering, electronics, and pharmaceuticals. Imports also increased, notably crude oil. Analysts see a positive trend with improved global trade conditions and optimistic future prospects for Indian exports.

India's merchandise exports witnessed a significant rise of 9.1 per cent, reaching USD 38.13 billion in May, even as the trade deficit expanded to USD 23.78 billion, marking a seven-month high, according to government data.

The growth in exports was driven by robust performances in engineering, electronics, pharmaceuticals, textiles, and plastics, despite prevailing global economic uncertainties. This positive momentum in exports was accompanied by a 7.7 per cent increase in imports, which amounted to USD 61.91 billion, spurred by a notable 28 per cent jump in crude oil imports.

Commerce Secretary Sunil Barthwal highlighted the positive export trends and expressed optimism for the future, citing slowing inflation in advanced economies as a factor that could boost global purchasing power. While acknowledging the widened trade deficit, Barthwal emphasized India's higher economic growth and balanced foreign exchange inflows as mitigating factors.

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