In May 2024, India’s trade deficit expanded to $23.8 billion, reflecting ongoing challenges in balancing international trade dynamics. This figure marks a significant increase compared to previous months, indicating a growing gap between the country’s exports and imports.
Source:- news 18
Despite the widening deficit, there was a positive development on the export front. India’s exports rose by 9% year-over-year (YoY), reaching $36.2 billion in May 2024. This growth was driven by robust performances in sectors such as pharmaceuticals, electronics, and engineering goods. The demand for these products surged in key markets, including the United States, Europe, and Southeast Asia, contributing to the overall export increase.
Source:- BBC news
However, the rise in exports was overshadowed by a substantial increase in imports, which totaled $60 billion in May 2024. The import growth was primarily fueled by higher purchases of crude oil, coal, and electronic components. Elevated global energy prices and increased demand for raw materials for manufacturing and infrastructure projects significantly contributed to the surge in imports.
The expanding trade deficit underscores the need for India to address its dependency on imported goods and strengthen its export base. Policymakers are likely to focus on measures to boost domestic production and diversify export markets to mitigate the trade imbalance in the coming months.
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