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Exports grow 3.9 per cent in May; trade deficit widens to $15.3 billion

  • By: thehindubusinessline.com
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  • Category: Exim News
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  • Date: 28 Jun 2019

India’s goods exports grew 3.93 per cent to $29.99 billion in May (year-on-year) following a growth in many key sectors such as engineering goods, iron ore and leather products, even as shipments of gems & jewellery and petroleum products declined.

Imports were 7.76 per cent higher at $45.35 billion during the month widening the trade deficit to $15.36 billion, compared to $14.62 billion in the same month last year. Gold imports in May posted an increase of 37.43 per cent to $4.78 billion.

Exporters, struggling to cope in a lack-lustre global market, have made a case for some hand-holding by the government.

“Export growth for the month of May remains at a sub-optimal level, requiring immediate government intervention. For engineering sector, exporters need crucial raw material like steel at international prices. Exporters are looking forward to the Union Budget for fiscal relief,” said Ravi Sehgal, Chairman, EEPC. In May 2019, other major commodity groups of export showing positive growth over the corresponding month of the previous year included electronic goods, ready made garments, drugs & pharmaceuticals and organic and inorganic chemicals. Total value of exports for the period April-May 2019-20 was $56.07 billion as against $54.77 billion registering a growth of 2.37 per cent.

Cumulative value of imports for the period April-May 2019-20 was $86.75 posting a growth of 4.39 per cent.

Exports of goods in 2018-19 registered a 9.06 per cent growth to hit a new high of $331 billion, breaching the previous high of $314 billion clocked in 2013-14.

However, in April, export growth decelerated 0.64 per cent (year-on-year) to $26.07 billion.