India: Trade deficit narrows in May
June 16, 2015
More recent data related to India’s external sector showed that the trade deficit totaled USD 10.4 billion in May, which was an improvement over the USD 11.2 billion shortfall observed in the same month last year. For the 12 months up to May, the trade deficit recorded USD 137.0 billion, which was slightly less than the 137.8 billion shortfall tallied in the 12 months up to April.
The narrowing in the trade deficit showed that imports contracted 16.5% annually in May, which was a steeper decline than the 11.4% drop registered in May of last year. The contraction was largely the result of the sharp decline in oil prices. Accordingly, oil imports totaled USD 8.5 billion, which represented a 41.0% decrease compared to the same month of the previous year.
Meanwhile, exports contracted 20.2% year-on-year in May, which contrasted the 12.4% expansion recorded in May 2014.