The country's overall trade deficit has narrowed to $10.35 billion in May this year, as compared to $12.20 billion in the same period a year-ago, government data showed on Thursday (June 15). "Trade deficit has come down substantially. Total trade deficit is down by 35.41 percent for April and May," Commerce Secretary Sunil Bharatwal said, adding that figures only for the first quarter of this year show a significant slowdown in exports.

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However, the merchandise trade deficit has widened to $22.1 billion last month, compared to $15.2 billion in the preceding month. Meanwhile, goods trade deficit stood at a five-month high of $22.12 billion in May, the highest monthly goods trade deficit since December 2022 due to a spurt in goods imports, which are also at a five-month high.

Merchandise exports fell by 10.2 percent year-on-year to $35 billion in May 2023, while imports fell 6.6 percent to $57.10 billion, according to the data.

The merchandise exports in the preceding month of April this year was at $34.6 billion, whereas, the imports during the month amounted to $49.9 billion.

The exports in the services category stood at $25.30 billion last month, which is similar to $25.13 billion recorded in the corresponding period of last year. The imports in this category fell to $13.53 billion, which is nearly 11 percent lower as against $15.20 billion reported in May last year.

The Commerce Secretary added, "Trade balance is in our favour, we have been able to cut imports more than the fall in exports."

First Published:Jun 15, 2023 4:01 PM IST