NEW DELHI: Goods exports rose 18% in May to a record $45.2 billion, driven by higher oil prices and restoration in supply chains and shipments to West Asia near last year’s level. With imports rising 20.5% to a seven-month high of $73.4 billion, trade deficit widened to $28.2 billion in May.“We have carried forward the momentum seen in April and we have maintained it in May… We should have a good June with things getting back to normal,” commerce secretary Rajesh Agrawal said Monday. Reopening of the crucial Strait of Hormuz is also expected to reduce cost pressure on Indian businesses, he said.
Goods expoerts at record
Engineering goods (24.5% rise to $12.3 billion) and oil products (55% jump to $8.4 billion) were the top drivers of exports, with non-oil exports rising 12% to $36.8 billion. What also helped was some sort of normalcy in shipments to West Asia, with exports in May pegged at $5.3 billion, compared with $5.4 billion a year ago as both sides opened new trade routes. On the import front, however, the closure of the Strait of Hormuz resulted in a near 18% fall to $10.7 billion in May, although it was a significant improvement over the 52% fall seen in March. A key reason for the decline is the disruption in supply of oil, gas, fertiliser and petrochemicals.While higher crude prices meant that the oil import bill in May was about 53.8% higher at $22.8 billion, gold imports went up 34% to $3.4 billion. There was, however, some respite in silver, which fell 87% to $75.6 million. But electronics saw a 36% rise to $12.3 billion.The impact of West Asia conflict was possibly visible in chemicals, where imports were down 64% to $1.3 billion, while fertiliser shipments went up 28% to $880 million in May.On the services front, exports are estimated to have increased 13% to $36.8 billion, while imports are seen to have risen 14.4% to $19.1 billion in May, resulting in a surplus of $17.7 billion.
