The country’s merchandise trade deficit shrank to an eight-month low, as imports over the month amounted to $38.53 billion, 68.54% over May 2020 and 17.47% lower than May 2019. However, leather, tea, readymade garments, oil seeds, handicrafts and gems and jewellery, saw a significant dip over the same period. “There is a sharp sequential rise in oil exports, even as non-oil exports dipped for the second consecutive month to US$26.9 billion in May 2021 from US$ 31 billion in March 2021. The government must address some of the key issues including priority status to exports sector, release of the necessary funds for MEIS and clarity on SEIS benefits, among others,” Mr Saraf said. “This will not only improve the profit margins of the pandemic-hit exporters but also boost sentiments considerably,” he said.

Source: The Hindu June 02, 2021 12:00 UTC