India’s merchandise trade deficit increased to a 5-month high of USD 22.1 bn in May-23 from USD 15.1 bn in Apr-23
Download ReportQuantEco Research || May-23 Merchandise Trade - Deficit prints at a 5-month high
India’s merchandise trade deficit increased to a 5-month high of USD 22.1 bn in May-23 from USD 15.1 bn in Apr-23. While both exports and imports showed a sequential expansion, the widening of the trade deficit was led by the relative outperformance of imports. Both core items (within which, Ores & Minerals, and Chemicals) and non-core items (Gems & Jewellery and Petroleum) led to the sequential widening of the trade deficit in May-23. Having said so, we continue to maintain our current account deficit forecast for FY24 at USD 53 bn (1.4% of GDP), down from an estimated level of USD 68 bn (2.0% of GDP) in FY23. Lower commodity prices coupled with expectation of moderation in real activity in FY24 are seen to be the primary reasons for expecting a moderation in the current account deficit.