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Goods exports shrink, trade deficit narrows

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Goods exports shrink, trade deficit narrows
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NEW DELHI: India’s goods exports and imports contracted by over 2% each in May, resulting in the trade deficit narrowing to $21.9 billion.Latest data released by the commerce department estimated that exports declined 2.3% to $38.7 billion as oil prices fell, resulting in lower shipments of petrol and diesel. Imports too fell 2.8% to $60.6 billion due to a decline in prices of gold and crude oil.The government, however, drew comfort from an increase in non-petroleum exports, which were up 5.1% at $33 billion. During the last two months, crude oil prices fell and had a “dampening” impact on exports, commerce secretary Sunil Barthwal said.

Goods exports shrink, trade deficit narrows

“If you look at the global picture…we are doing much better than the global average. Despite the global policy uncertainty regarding trade, ongoing conflicts, we have done extremely well (during April-May),” he said.Exports of petroleum products are estimated to have declined 30% to $5.6 billion in May. Similarly, crude oil and gold imports fell 26.1% and 12.6% to $14.7 billion and $2.5 billion, respectively. Barthwal said that the commerce department is focusing on 20 countries and six sectors, which account for a bulk of the global imports.Federation of Indian Export Organisations (FIEO) president S C Ralhan said that exporters are adapting well to a tough global environment.Mithileshwar Thakur, secretary general at AEPC (Apparel Export Promotion Council), said that exports have been keeping the momentum and registering an impressive double-digit growth during this fiscal so far. “Industry is upbeat about the news of early conclusion of FTA with the US and the EU, which are our largest markets,” he said.On the services front, the exports for May were estimated at $32.4 billion compared with $29.6 billion in May 2024. Imports, on the other hand, rose to $17.1 billion as against $16.9 billion last year.





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