India's trade deficit narrows to $3.15 billion in May

What is Balance Of Trade

It is the difference between the monetary value of a nation's exports and imports over a certain time period.

1. India's trade deficit narrowed to $3.15 billion in May from $15.36 billion a year ago.
2. Exports in the same month stood at $19.05 billion, while imports were seen at $22.2 billion.
3. They have contracted for the third straight month now.
4. The trade deficit was at $6.76 billion last month.

• Imports too plunged 51% to $22.2 billion in May,
• Leaving a trade deficit of $3.15 billion, compared to $15.36 billion in the same month previous year,      

                     According to the data released by the Commerce and Industry Ministry.

REASON FOR TRADE DEFICIT

1. Oil imports stood at USD 3.49 billion in May - 71.98% lower compared to USD 12.44 billion in the same month last year.
2. Gold imports in May also dipped 98.4% to USD 76.31 million.
3. Except for Iron ore, Drugs & pharmaceuticals, Spices and Rice which registered a growth of 103.04%, 17.32%,10.55% and 7.64% respectively,
4. All other commodity/commodity groups have registered negative growth in May 2020 vis-a-vis May 2019.