India’s merchandise exports in May 2024 grew 9.09 per cent year-on-year to $38.13 billion, as compared with $34.95 billion a year ago. The country’s trade deficit stood at $23.78 billion during the month, according to the official data released on Friday.

India’s merchandise imports were at $61.91 billion in May 2024, which is 7.7 per cent higher as against $57.48 billion a month ago, according to the data released by the Ministry of Commerce and Industry.

During April-May 2024, India’s merchandise exports during April-May 2024 were $73.12 Billion as compared to $69.57 billion during April-May 2023.

“Merchandise imports during April-May 2024 were $116.01 Billion compared to USD 106.54 Billion during April-May 2023. Merchandise trade deficit during April-May 2024 was $42.89 Billion compared to $36.97 Billion during April-May 2023,” according to the latest data.

Healthy growth in sectors such as engineering, electronics, pharmaceuticals, textiles and plastics helped register growth in exports despite global economic uncertainties.

Oil imports rose by 28 per cent to USD 20 billion in May. It was up by 24.4 per cent during April-May 2024-25 to USD 36.4 billion.

However, gold imports dipped marginally to USD 3.33 billion in May this year from USD 3.69 billion in the same month of FY24.

The previous high in the deficit was recorded in October 2023 at USD 31.46 billion.

In April 2024, the outbound shipments dipped to USD 41.68 billion from USD 41.96 billion a year ago.

Cumulatively, exports during April-May this fiscal rose by 5.1 per cent to USD 73.12 billion and imports rose by 8.89 per cent to USD 116 billion.

Briefing media on the data, Commerce Secretary Sunil Barthwal said May has been an excellent month in terms of exports and “I hope that this trend will continue”.

He said that inflation in advanced economies is slowing and it would help further push purchasing power that will raise demand for imports.

“I feel that this positive trend will continue. Things are looking better and optimistic for the trade sector,” Barthwal said.

Asked whether he is concerned about the widening trade deficit, the secretary said as India is registering higher economic growth than the world, it will lead to increase in domestic demand for imports and dip in exportable surplus.

“Trade deficit per se I do not consider it as bad as long as you have FDI flowing in, foreign exchange coming in and if you are balancing it through other means. And secondly we should also look at the growing services exports…then we should not unnecessarily be worried about the trade deficit in merchandise,” Barthwal added.

According to the commerce ministry data released on Wednesday, the estimated value of services export in May is USD 30.16 billion as compared to USD 26.99 billion in May 2023.

Imports of services are estimated to have increased to USD 17.28 billion during the month as compared to USD 15.88 billion in May 2023.

India’s shipment to top five export destinations – the US, the Netherlands, UAE, Malaysia, and the UK – recorded healthy growth in May.