Trade deficit expands in May to $6.27 billion

Overall trade balance improved in May. Trade deficit for the month came in at USD 6.27 billion against USD 4.84 billion on a month-on-month basis. Taking merchandise and services together, trade deficit for April-May in FY17 came in at USD 5392.77 million which is 65.67 percent lower in dollar terms than the level of USD 15710.54 million during April-May 2015-16. Exports during May,2016 were valued at USD 22170.62 million or Rs 148336.31 crore) which was 0.79 per cent lower in dollar terms (4.04 per cent higher in rupee terms) than the level of USD 22346.75 million during May,2015. Imports during April, 2016 were valued at USD 7183 million (or Rs 47745.04 crore) registering a negative growth of 9.13 percent in dollar terms as compared to positive growth of 9.96 percent during March 2016.Reacting to the news Shubhada Rao of Yes Bank said trade deficit was in line with her expectations. Commodity prices have inched up and some of that price impact has shown in dollar terms in the import bill, she said.Exports had been sub-par in April, she said, adding that she had expected exports to go back to its trend of USD 23 billion.Watch video for more...