India’s May exports up at 10.2 pc, trade deficit also narrowed

India’s overall exports, merchandise and services combined, in the month of June were to the tune of USD 68.29 billion, a 10.2 rise on a yearly basis, commerce ministry data showed on Friday.

In break up, exports of merchandise goods rose 9.1 per cent to USD 38.13 billion, and exports of services rose 11.7 per cent to USD 30.16 billion.

Exports of petroleum products, engineering goods, electronics goods, drugs and pharmaceuticals, all rose in May, while spices, other cereals, gems and jewellery, oil meals, marine products saw marginal decline.

On the import side, petroleum crude and products, transport equipment, electronic goods, vegetable oil, and pulses rose, while coal coke, gold, fertilisers crude and manufactured, iron and steel, and chemical materials and products fell, data showed.

The trade deficit, meaning the difference between the exports and the imports, during the month declined year-on-year from USD 11.41 billion to USD 10.90 billion.

The country imports too increased year-on-year in May, data showed today.

The overall imports, both merchandise and services combined, increased from USD 73.36 billion to USD 79.20 billion, a rise of about 8 per cent.

“In our exports if you look at the overall exports then in the month of May for the first time, it has grown by double digit which is a big thing for us,” said Commerce Secretary Sunil Barthwal.

In the recently concluded financial year 2023-24, India registered record exports at USD 778 billion. In 2022-23, the country exported goods and services combined at USD 776.3 billion.

In break up, services exports rose from USD 325.3 billion to USD 341.1 billion in 2023-24. Merchandise exports though marginally declined from USD 451.1 billion to USD 437.1 billion.

Among various steps the government took was to launch a Production Linked Incentive (PLI) scheme in varied sectors, including electronic goods, to make Indian manufacturers globally competitive, attract investments, enhance exports, integrate India into the global supply chain and reduce dependency on imports. These seemed to have reaped dividends.

China, Russia, Iraq, UAE, and Singapore were among the countries where India’s exports in the just-concluded financial year have risen substantially, though with a low base. The other countries in the Top 10 list are the UK, Australia, Saudi Arabia, the Netherlands, and South Africa.

Coming to overall imports, they declined from USD 898.0 billion in 2022-23 to USD 853.8 billion. Both merchandise and services exports declined during the financial year.

Overall trade deficit significantly improved from USD 121.6 billion in 2022-23 to USD 75.6 billion in 2023-24.