Fluctuating Fortunes: India's Export Struggles Amid Global Uncertainties

India's exports have encountered a slump, decreasing by 2.17% year-on-year in May, falling to USD 38.73 billion, a consequence of declining global petroleum prices. This drop contrasts with a two-month growth streak, as reported by the government's latest trade data.

The situation has also impacted imports, which decreased by 1.7% to USD 60.61 billion, with inbound shipments of gold and crude oil taking a significant hit. Meanwhile, the trade deficit narrowed to USD 21.88 billion for the month.

Commerce Secretary Sunil Barthwal highlighted global uncertainties, such as the Iran-Israel conflict, as critical factors influencing export performance. While some sectors experienced setbacks, shipments of tea, coffee, and electronic goods showed resilience, suggesting targeted strategies for growth amid ongoing challenges.

(With inputs from agencies.)