(Bloomberg) -- India's trade deficit widened for a third straight month as exports remained sluggish amid a slowing global economy and escalating U.S.-China trade war.
The gap between exports and imports was $15.36 billion in May, slightly higher than $15.33 billion in April, according to data from the Commerce Ministry on Friday. That compares with the $15.74 billion median estimate in a Bloomberg survey of 22 economists.
Key Insights
- Exports rose 3.9% from a year ago to $29.9 billion, compared with a 0.6% gain in April. Imports rose 4.3% to $45.4 billion, against a 4.5% increase in the previous month
- Asia's third-biggest economy is more reliant on its large services sector than goods' exports. Prime Minister Narendra Modi has made it a priority to improve the share of manufacturing in the economy and double exports
- Weak global demand as a result of the trade wars may further impact India's exports and investment activity, the Reserve Bank of India said last week. Waning consumption and a debt crisis in the financial sector have dragged down economic growth to a five-year low
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- Oil imports rose 8.2% in May from a year earlier to $12.4 billion
- To read the full statement, click here
--With assistance from Manish Modi.
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To contact the reporter on this story: Vrishti Beniwal in New Delhi at vbeniwal1@bloomberg.net
To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Devidutta Tripathy
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