India’s merchandise trade deficit widens to a 5-month high

Merchandise Trade Deficit widens to $22.1 billion in May amid declining exports and imports. On the back of the global demand setback, India's exports fell 10.3 per cent y-o-y to $34.98 billion in May this year. Exports of key items went down on annual basis, such as, Engineering goods exports stood at $9.3 billion, down 4.2%, Petroleum product exports were at $5.9 billion, 29.9% lower, and Gems and jewellery exports were at $2.8 billion, 12.5% lower.
Merchandise imports also declined by 9.7% y-o-y to $57.1 billion in May 2023. Petroleum, crude and product imports were down 6% over a year earlier at $15.6 billion. Imports of coal, coke and briquettes were 28.5% lower than a year ago at $4.5 billion. However, imports of some key products also went up, including electronic goods imports, which were at $6.7 billion, 18.6% higher over a year earlier. Machinery, electrical and non-electrical goods were at $4.1 billion, up 25.4% over a year ago.