Exports of goods registered a 3.93% y-o-y growth in May to $29.99 billion as many of the major sectors including the likes of engineering goods, iron ore and leather products grew despite a slowdown in exports of gems & jewellery and petroleum products.
Imports came in higher at $45.35 billion during the month, an increase of 7.76%, expanding the trade deficit to $15.36 billion in comparison to $14.62 billion in May 2018. Also, imports of gold during the month increased by 37.43% to $4.78 billion.
"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.
Nonetheless, as Indian exports continue to struggle amid weak global economy some of export-oriented commodity groups that posted positive growth in comparison to the same month of last year include included electronic goods, ready made garments, drugs & pharmaceuticals and organic and inorganic chemicals.
For the April-May period of 2019-20, exports grew by 2.37% to $56.07 billion as against $54.77 billion in the same period of the previous year. Also, during the same period, imports grew by 4.39% to $86.75 billion.
For the FY 2018-19, Indian exports logged a new record high of $331 billion, breaching the previous high reached in 2013-14 of $314 bilion.