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India's May exports up 9.1% y/y as outlook improves

Published 06/14/2024, 05:26 AM
Updated 06/14/2024, 05:30 AM
© Reuters. FILE PHOTO: A mobile crane carries a container at Thar Dry Port in Sanand in the western state of Gujarat, India, February 13, 2017. Picture taken February 13, 2017. REUTERS/Amit Dave/File Photo

By Shivangi Acharya and Manoj Kumar

NEW DELHI (Reuters) - India's merchandise exports rose 9.1% to $38.13 billion in May from a year earlier, helped by an increase in shipments of engineering goods, commercial vehicles and smartphones, government data showed on Friday.

Merchandise imports in the same month rose 7.7% year-on-year to $61.91 billion - widening the trade deficit to $23.78 billion. Economists had expected a deficit of $19.5 billion, according to a Reuters poll.

In April, trade deficit was of $19.1 billion.

Analysts say merchandise exports - which contracted 3.1% to $437 billion in the previous fiscal year - are likely to pick up helped by a projected rebound in global trade, government incentives for manufacturing and easing domestic inflation.

Inflation has eased in developed economies, potentially leading to better demand, and a rise in imports from India, trade secretary Sunil Bharthwal said while releasing the figures.

"This will be a positive trend for Indian exports this fiscal year," he said, noting exports of goods were helped by increased shipments to the United States.

© Reuters. FILE PHOTO: A mobile crane carries a container at Thar Dry Port in Sanand in the western state of Gujarat, India, February 13, 2017. Picture taken February 13, 2017. REUTERS/Amit Dave/File Photo

Services exports in May were estimated at $30.16 billion and imports at $17.28 billion, compared with $30.33 billion and $16.63 billion respectively in April.

Asia's third-largest economy grew at a faster-than-expected pace of 7.8% in the January-March quarter, helped by a strong performance in the manufacturing sector. Economists expect the momentum to continue this year.

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