Easing crude costs and higher refined petroleum exports helped shrink India’s May trade gap from April’s $28.38 billion.
India’s trade deficit narrowed to $28.21 billion in May from $28.38 billion in April, as falling oil prices and increased refined petroleum exports offset rising crude import costs. The crude import bill surged to $22.7 billion last month, nearly double the year-ago level, but the overall deficit improved slightly.
April’s deficit had held at elevated levels due to a crude price shock, while May’s figures reflect early signs of relief from Middle East supply increases. Analysts expect further narrowing if oil prices stabilize under the tentative U.S.-Iran deal.
Markets remain cautious as the deficit remains historically high, though the trend suggests potential easing in coming months.