Government data for May shows India’s merchandise trade deficit narrowed to USD 21.88 billion from USD 26.42 billion in April, significantly below economists’ forecast of USD 25 billion. The improvement stems from both slower import growth, notably in oil and gold, and seasonal uptick in exports—the former stood at USD 60.6 billion, with exports at USD 38.7 billion.
On the services front, India posted a surplus of approximately USD 14.65 billion in May, with service exports outpacing imports. Economists warn, however, that rising oil prices and lingering geopolitical uncertainties could pressure trade balances in the coming months.
