Chennai: With the global demand showing positive signals, merchandise exports rose by over 9 per cent in May.
Merchandise exports in May 2024 stood at $38.13 billion as compared to $34.95 billion in May 2023.
Petroleum products, engineering goods, electronic goods, drugs and pharmaceuticals, ready-made garments, and plastic and linoleum were the major drivers of merchandise export growth.
“The upturn in shipments reflects an improvement in the demand scenario in India's key markets. The global economic outlook is expected to improve in the ongoing fiscal and the exporting community remains optimistic,” said EEPC India chairman Arun Kumar Garodia.
Shipments to the US grew 13 per cent, Netherlands 44 per cent, UAE 19.43 per cent, Malaysia 87 per cent and UK 33.5 per cent.
Merchandise imports too grew to $61.91 billion as compared to $57.48 billion in the same month last year. The merchandise trade deficit widened to $23.78 billion in May.
In April 2024, the country’s trade deficit stood at $19.1 billion while in May 2023, it was $22.1 billion. The trade deficit had narrowed to an 11-month low of $15.6 billion in March.
"While exports growth rose to a robust 9.1 per cent and outpaced imports growth of 7.7 per cent, the merchandise trade deficit widened to a seven-month high, driven by a jump in the net oil imports,” said Aditi Nayar, Chief Economist, ICRA. Import of goods excluding petroleum products in May was similar to last year. Import of pulses rose 181 per cent in May and that of silver by 407 per cent.
Exports during April-May this fiscal rose by 5.1 per cent to $73.12 billion and imports rose by 8.89 per cent to $116 billion. The merchandise trade deficit enlarged by $6 billion in April-May and ICRA expects the current account deficit to rise to 1.5 per cent of GDP in this quarter from 1.1 per cent of GDP in Q1 FY2024.
India’s total exports – merchandise and services combined - are estimated to have grown at 10.25 per cent in May to $68.29 billion. Total imports grew 7.95 per cent to $79.20 billion.
The estimated value of services export was $30.16 billion against services imports of $17.28 billion.
