New Delhi: India’s trade deficit rose to a five-month high in May at $22.12 billion, showed data released by the government on Thursday, June 15.Merchandise exports fell 10.3% to $34.98 billion from a year earlier in May, while imports declined 6.6% annually to $57.10 billion, Mint reported, citing government data.However, commerce secretary Sunil Bharatwal told CNBC TV-18 that figures only for the first quarter of this year show a significant slowdown in exports.“Trade deficit has come down substantially. Total trade deficit was down by 35.41% for April and May,” he said.He added that “trade balance is in our favour, we have been able to cut imports more than the fall in exports.”In April, goods exports shrunk 12.7% on year. This was the third month in which goods exports had declined. It was prompted by sluggish demand and recession in major markets.A trade deficit occurs when a country imports more goods and services than it exports.Economists say that more imports than exports impact the jobs market and lead to an increase in unemployment. It can affect investor sentiment and hurt appeal of the local currency.
