Overview

• India’s trade deficit narrowed to $21.88 billion in May from $26.42 billion in April on a 1.76% fall in imports to $60.61 billion.
• Merchandise exports slipped 2.17% year-on-year to $38.73 billion while services exports climbed to $32.39 billion, yielding a services surplus of $14.65 billion.
• Exports to the United States rose 16.9% to $8.83 billion in May, driven by robust electronics and pharmaceuticals shipments despite higher tariffs.
• China’s exports to the US plunged 34.5% in May as its shipments to India climbed 12.4%, fuelling a 27.5% jump in India’s electronics imports.
• Foreign exchange reserves hit $696.66 billion by early June, giving India room to navigate Middle East trade disruptions and negotiate FTAs with the US, UK and EU.