Exports declined for the fourth consecutive month by 10.3% year-on-year to $34.98 billion in May, while the trade deficit widened to a five-month high of $22.12 billion.
According to the data released by the commerce ministry on Thursday, June 15, key export sectors recording negative growth include petroleum products, gems and jewellery, engineering goods, ready-made garments of all textiles and chemicals. Imports also declined 6.6% for the sixth month in a row to $57.1 billion against $61.13 billion in the same month last year, the data showed. The trade deficit in May 2022 stood at $22.13 billion. The last high was in December 2022, when the gap was $23.89 billion.
Cumulatively, exports during April-May this fiscal contracted by 11.41% to $69.72 billion, while imports declined 10.24% to $107 billion.
Briefing reporters on the data, Commerce Secretary Sunil Barthwal said headwinds still continue at the global trade front as there is a “whole lot of” recession and slowdown in many countries. The fall in economic growth in certain developed markets has impacted import demand, he said, adding there is also low demand in OECD nations.