Priyanka Tiwari
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Suspense crime, Digital Desk : India's economy presented a dynamic picture in May, with exports surging by a robust 9.1% year-on-year, signaling strong global demand for Indian goods. However, this positive momentum was matched by a significant rise in imports, pushing the country's merchandise trade deficit—the gap between the value of goods imported and exported—to a seven-month high of $22.53 billion.
According to data released by the Commerce Ministry on Friday, merchandise exports climbed to $38.13 billion in May, driven by impressive performances in key sectors like electronics, engineering goods, and petroleum products. This marks the highest export value in the last three months, showcasing the resilience of India's manufacturing and export sectors.
On the other side of the ledger, imports also rose by 7.7% to $60.66 billion. This increase reflects a healthy domestic economy where both consumers and businesses are spending. A significant portion of the import bill was driven by higher purchases of petroleum and crude oil, along with electronic goods and machinery, indicating that industrial activity and consumer demand remain strong.
While the goods deficit widened, India's thriving services sector continued to be a major strength. Services exports were estimated at a healthy $30.16 billion, while services imports stood at $17.28 billion. This resulted in a services trade surplus of $12.88 billion.
When combining both goods and services, the nation's overall trade deficit actually narrowed slightly to $15.17 billion for the month, an improvement compared to the $17.43 billion deficit recorded in May 2023. The data paints a complex but largely positive picture of an economy firing on both cylinders—powering global supply chains with its exports while simultaneously fueling its own internal growth.
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