May merchandise trade gap fell below forecasts as exports climbed to $45.2 billion, easing pressure on India’s trade balance.
India’s merchandise trade deficit narrowed to $28.21 billion in May from $28.38 billion in April, beating economists’ expectations of $28.72 billion. The improvement came as exports rose to $45.2 billion from $43.56 billion in April, while imports increased to $73.41 billion from a six-month high of $71.94 billion.
April-May goods exports remained nearly flat year-over-year at $17.29 billion versus $17.21 billion, highlighting challenges in sustaining growth. The data arrives as India seeks greater U.S. market access amid ongoing trade negotiations.
Trade Secretary Rajesh Agrawal confirmed U.S. Trade Representative Jamieson Greer will visit India on June 23-24 to finalize an interim trade agreement, with discussions expected to address proposed U.S. tariffs under a Section 301 probe.