Exports up 15.46 pc to $37.3 bn in May; trade gap widens to $ 23.33 bn

India’s merchandise exports rose by 15.46 per cent to $37.29 billion in May on account of healthy performance by sectors like petroleum products, electronic goods and chemicals, even as the trade deficit widened to $ 23.33 billion during the month, the commerce ministry said on Thursday.

Imports during the month too grew by 56.14 per cent to $60.62 billion. The trade deficit in May 2021 stood at $6.53 billion. “India’s merchandise export in April – May 2022-23 was $77.08 billion with an increase of 22.26 per cent over $63.05 billion in April -May 2021-22,” it said.

Petroleum and crude oil imports during May 2022 surged by 91.6 per cent to $18.14 billion. Coal, coke and briquettes imports jumped to $5.33 billion, as against $2 billion in May 2021.

Gold imports increased to $5.82 billion during the month under review, from $677 million in May 2021.

Despite global headwinds, Indian engineering exports stood at $9.29 billion in May 2022 as against $8.62 billion in the same month last year recording a growth of 7.84%. In the first two months of the current fiscal, the engineering exports were $18.97 billion, up 14.34% over $16.59 billion in the same period previous year showing that the sector is standing on firm footing and can withstand the challenges, said EEPC India Chairman Mahesh Desai. He further said that in the short and medium term there are fears of demand slowdown in advanced economies which could potentially dent the ongoing momentum.

“The recent reduction in excise duty on auto fuels is a much-needed relief. The custom duty calibration on raw materials of steel and measures to boost local availability of the key input to calm down steel prices show the government would respond as and when the situation warrants so,” Desai said.