India's trade deficit grew 99.61 per cent to $6.28 billion during May 2021 against a deficit of $3.15 billion in May 2020, the Union Ministry of Commerce and Industry said on Tuesday.
While India's merchandise exports rose by 69.35 per cent to $32.27 billion in May, driven by healthy growth in sectors such as engineering, petroleum products and gems and jewellery, imports went up from $22.2 billion in May 2020 to $38.55 billion, a 73.64 per cent rise.
Cumulative value of imports for the period April-May 2021 was $84.27 Billion (Rs. 6,22,958.62 Crore), as against USD 39.32 Billion (Rs. 2,98,502.76 Crore) during the period April-May 2020, registering a positive growth of 114.31 per cent in Dollar terms and a positive growth of 108.69 per cent in Rupee terms. Oil imports went up 171 per cent in May 2021 compared to levels in May 2020. The commerce ministry notes that global Brent price in dollars per barrel had gone up by 119.34 per cent in the same period, as per World Bank data.
Non-oil imports, $29.1 billion, were higher by 55.48 per cent in dollar terms. Non-Oil and Non-Gold imports were USD 28.42 Billion in May 2021, recording a positive growth of 52.48 per cent
Negative growth in imports was seen in sectors like silver (-95.31 per cent), newsprint (-48.53 per cent), pulses (-42.9 per cent) and iron and steel (-3.03 per cent).
Some export products like cereals went up by 847.1 per cent. Exports in jute manufacturing including floor covering went up by 256.29 per cent, while petroleum product exports rose 227.25 per cent. Other sectors showing strong growth were handicrafts excluding handmade carpet (192.9 per cent), gems and jewellery (179.13 per cent) leather and leather products (155.08 per cent) Meat, dairy and poultry products (146.45 per cent), man-made yarn/fabs./made-ups etc. (146.34 per cent), Cotton yarn/fabs./madeups, handloom products etc. (137.93 per cent), RMG of all textiles (114.21 per cent), Carpet (107.85 per cent) and electronic goods (90.79 per cent).
Oil imports during May 2021 rose to $9.45 billion, as compared to $3.49 billion in the same month of 2020.
Gold imports increased to $679 million during the month under review from $76.31 million in May 2020.
Exports of engineering, petroleum products and gems and jewellery in May stood at $8.64 billion, $5.33 billion and $2.96 billion, respectively.
On trade balance, the trade deficit for May 2021 was estimated at $6.28 Billion as against the deficit of $ 3.15 Billion in May 2020, which is an increase of 99.61 per cent. As per RBI’s June 1 press release,, the trade balance in Services (i.e. Net Services export) for April 2021 is $ 7.65 Billion. The estimated trade balance in May 2021 is $7.88 Billion.
Taking merchandise and services together, overall trade deficit for April-May 2021 is estimated at $5.85 Billion as compared to the surplus of $4.06 Billion in April-May 2020.
With inputs from PTI
