SME Times is powered by   
Search News
Just in:   • Exports rise by 16.8 pc to $37.9 bn in June  • Gujarat, Karnataka best states for startups  • Iron Pillar to raise $400 mn to empower Indian tech startups: Report  • Australia scraps requirement to declare Covid vax status for int'l arrivals  • Sri Lanka's petrol stocks about to run dry: Minister 
Last updated: 21 Jun, 2022  

Exports.9.Thmb.jpg Trade deficit

Exports.9.jpg
   Top Stories
» Exports rise by 16.8 pc to $37.9 bn in June
» Gujarat, Karnataka best states for startups
» June export figures indicate strength of the sector: FIEO
» India-EU conclude 1st round of trade negotiations
» 'Time to move from 'Volume' to 'Value' leadership in Pharma market'
Bikky Khosla | 21 Jun, 2022

Exports of merchandise goods and services grew over 24 percent Y-o-Y to $62.21 billion in May, as per official data released last week. Merchandise exports stood at $38.94 billion against $32.30 billion in the corresponding period last year, registering a growth of 24.03 percent while services exports stood at $23.28 billion against $17.86 billion, registering a growth of 20.55 percent Y-o-Y. Overall exports grew 25.90 percent Y-o-Y in April-May 2022 to $124.59 billion.

On the other hand, overall imports in May grew to $77.65 billion, which is 59.19 percent higher over the same period last year, while overall imports in April-May 2022 are estimated to be $151.89 billion, registering 45.44 percent y-o-y growth. Merchandise trade deficit in May 2022 and in April-May 2022 rose by 271.96 percent and 104.80 percent, respectively. The services exports sector, however, witnessed, trade balance, which rose 11.85 percent in May and 6.39 percent in April-May 2022.

These figures speak for themselves. Although exports are positive, the widening trade deficit is a concern, particularly when it comes to merchandise exports, as imports have shown rapid growth, driven by supply-chain disruptions and high oil and commodity prices, due to geopolitical tensions. In the background of this situation, India’s current account deficit may rise further in the coming quarters, which touched a 13-quarter high in October-December 2021.

Meanwhile, FIIs are on a selling spree, which is another concern for the Indian economy at this juncture. Over the last few months this year, they sold to the extent of Rs 2.67 lakh crore, and although this was offset by strong domestic DII inflows, it is equally important that FIIs return to Indian markets sooner rather than later. Also, the Rupee may depreciate further amid FII outflows, which needs to be reversed.

I invite your opinions.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 04 Jul, 2022
  Daily Poll
COVID-19 has directly affected your business
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(1)
» China's forex reserves reach USD 2.85 trillion(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter