May trade deficit widens to $22.12 bn

India’s merchandise trade deficit for May 2023 was $22.12 billion, widening from a 20-month low of $15.24 billion in April 2023, the commerce ministry data released today shows. Merchandise exports in May were at $34.98 billion, down from $39 billion in May 2022, while the merchandise imports were at $57.10 billion, down from $61.13 billion YoY, the data shows.

India’s trade deficit has, however, shown a considerable decline in April-May 2023. India’s merchandise trade deficit for April-May 2023 stood at $37.26 billion compared to $40.48 billion during April-May 2022, registering a decline of 7.95%, the monthly data shows. The overall trade deficit for April-May 2023 declined 35.41% to $13.28 billion as compared to the deficit of $20.56 billion during April-May 2022, the ministry adds.

India’s overall exports, including merchandise and services, in May 2023, however, dipped 5.9% to $60.29 billion, while imports plunged 7.45% to $70.64 billion on a YoY basis. In the fiscal year so far (April-May 2023), the overall exports dipped 5.48% over April-May 2022, while the overall imports dipped 9.63% on a YoY basis.

Non-petroleum and non-gems & jewellery exports in May 2023 declined to $26.22 billion as compared to $27.30 billion in May 2022, while the non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in May 2023 were at $35.88 billion, compared to $35.29 billion in May 2022.

Exports of electronic goods increased by 73.96% YoY during May 2023 at $2.42 billion, while during April-May 2023 electronic goods exports were recorded at $4.54 billion vs $3.06 billion in April-May 2022, up 48.06%.

In services, India recorded exports worth $25.30 billion in May, almost the same as compared to $25.13 billion in May 2022. Imports were at $13.53 billion as compared to $15.20 billion in May 2022.

For April-May 2023, the services exports were at $51.14 billion up from $49.17 billion in the year-ago period. The estimated value of services imports for the period dipped to $27.16 billion as compared to $29.25 billion in the year-ago period.

The country recorded a services trade surplus worth $23.98 billion in April-May 2023 against $19.92 billion in April-May 2022.

"India’s trade performance, after witnessing very strong growth in 2022-23 has shown declining trends as compared to the high base of last year as the pace of growth in global merchandise exports moderated significantly in 2023, as persisting geopolitical tensions and monetary tightening induced recessionary fears have led to a decline in consumer spending across advanced nations," says the commerce ministry.

For May 2023, under merchandise exports, 13 of the 30 key sectors exhibited positive growth in May 2023 as compared to the same period last year (May 2022).