Agencies
Exports declined for the fourth-consecutive month by 10.3 per cent year-on-year to $34.98 billion in May, while the trade deficit widened to a five-month high of $22.12 billion.
According to the data released by the commerce ministry on Thursday, key export sectors recording negative growth include petroleum products, gems and jewellery, engineering goods, ready-made garments of all textiles and chemicals. Imports also declined 6.6 per cent, six-month in a row, to $57.1 billion against $61.13 billion in the same month last year, the data showed. The last high was in December 2022, when the gap was $23.89 billion.
Cumulatively, exports during April-May this fiscal contracted by 11.41 per cent to $69.72 billion, while imports declined 10.24 per cent to $107 billion.
Briefing reporters on the data, commerce secretary Sunil Barthwal said headwinds still continue at the global trade front as there is a “whole lot of” recession and slowdown in many countries. The fall in economic growth in certain developed markets has impacted import demand, he said, adding there is also low demand in OECD nations.
However, he expressed hope that the demand will pick up in developed countries. “We are expecting that slowdown conditions should improve and demand should pick up,” Barthwal said. He also informed that the ministry is working on a trade strategy to promote exports.
As part of that, the Department of Commerce, Department for Promotion of Industry and Internal Trade (DPIIT), Invest India and Indian missions abroad would focus on 40 countries. These countries, including the US and European Union nations, account for 85 per cent of India's total exports. There would be a focus on promoting exports along with catering to the needs of the domestic market, he said, adding both departments “are kind of forging an alliance in terms of promoting investments and exports and for that, both are working a trade and investment strategy”.
