India's exports decline 10.3% to USD 34.98 billion, imports decline 6.6% to USD 57.1 billion Y-o-Y in May: Govt data

India's exports declined 10.3 per cent year-on-year to USD 34.98 billion in May this year, the government data showed on Thursday. Imports also declined 6.6 per cent to USD 57.1 billion against USD 61.13 billion recorded in the same month last year, the data showed. zdeeOn a year-on-year basis, oil exports declined by 29.9 per cent in May, followed by decline in non-oil exports of 4.9 per cent.  

“The sharp reduction in oil exports reflects sharp reduction in crude oil prices, while volumes have held up. Meanwhile, the decline in non-oil exports was driven by gems and jewelry and engineering goods and chemicals,” said Gaura Sengupta, economist, IDFC First Bank.  

As per the data released by the Ministry of Commerce, the country not only witnessed a fall in export numbers, rather there has been a considerable fall in imports too.  

Imports also declined 6.6 per cent to USD 57.1 billion against USD 61.13 billion recorded in the same month last year, the data showed.

On the imports front, the decline (year-on-year) was led by gold imports which were lower by 38.7 per cent in May 2023. Oil imports were also lower by 6.0 per cent YoY, reflecting sharp reduction in crude oil prices, while crude oil import volumes were higher.

 “The wider deficit on a month-on-month basis was led by rise in gold imports (higher by US$2.7bn Month-on-Month) and non-oil non gold imports (higher by US$4.1bn month-on-month). Meanwhile exports were broadly flat on a month-on-month basis,” added Sengupta.  

Commerce Secretary Sunil Barthwal said headwinds still continue on the global trade front. The Department of Commerce and Department for Promotion of Industry and Internal Trade are working on an exports strategy and focusing on 40 countries, Barthwal added.

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