Mint Quick Edit | India’s trade has held up
India’s trade data for May came as a relief in the context of global turbulence. Exports were broadly steady and the trade gap narrowed. But then, nothing can be taken for granted.
Amid concerns of the ongoing tariff war hurting trade, so far India’s merchandise shipments seem to be holding up. Trade data for May released on Monday showed that India’s exports edged lower to $38.7 billion from $39.6 billion a year earlier.
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Imports dipped to $60.6 billion from $61.7 billion. With inward shipments dropping more, the trade deficit narrowed to $21.9 billion from $22.1 billion a year ago and the five-month peak of $26.4 billion in April.
Broadly, the numbers betray no sign of a trade crisis scuttling India’s outbound cargo hauls. Trade growth has been slow. But then again, uncertainty prevails over what a US trade reset will finally mean and there are other risks on the radar such as the Israel-Iran military conflict.
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The first tranche of a trade pact in the works with the US would need to be parsed for the potential it offers in terms of access to the world’s most sought-after market.
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Meanwhile, global discomfort with how the world is shaping up is reflected in gold prices as investors seek safe havens. The yellow metal has gone above the ₹1 lakh per 10gm mark in India. But an increase in our gold import bill could be a bother if it is not covered by earnings from stronger exports.
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