What’s in the news?

• As per preliminary data from the Commerce and Industry Ministry, India’s merchandise trade deficit widened to a monthly record of $23.33 billion in May, as exports grew 15.5% to $37.3 billion while imports jumped 56.1% to $60.62 billion. The previous highest monthly trade deficit was last November’s $22.91 billion.
• Goods exports shrank 7.2% from April’s $40.19 billion of outbound trade, resulting in the merchandise trade deficit for the first two months of 2022-23 widening to $41.73 billion.
• This is the third month in a row that India’s merchandise imports have crossed $60 billion, due to elevated commodity and oil prices amid the festering Russia-Ukraine conflict. 
• Last month, rating agency ICRA had projected a record merchandise trade deficit of $250-255 billion for 2022-23, with exports growth slowing to about 9% during the year and imports expected to rise 16% as domestic demand is anticipated to outpace external demand.

Reference:

https://www.thehindu.com/business/Economy/trade-deficit-widens-to-record-2333-bn/article65488487.ece