Ministry of Commerce reported thatIndia’s tradedeficitexpanded to a six-month high of $15.4 billionin May, with import growth outpacing export growth following a37% jump in gold imports.Exports grew3.93% in the month of May,whileimports rose 4.31%.
Iran, China-US trade war:
Out of six months in the past 7 months, the exports have been in low single digits which barred March when it grew in double digits. Rising crude oil prices, amid sanctions on Iranian oil imports, could further increase imports and put pressure on India’s current account deficit.
China’s exportsin Mayincreased by 1.1%,whileimports fell by 8.5%. This lead to a significantly higher trade surplus of $41.65 billion than analysts projected.
The escalating trade war between the US and China have cast a shadow on India’s prospects for higher exports.
