India’s Crude Import Rose 92%, Gold Purchase Jumped 760% In May Year-On-Year

India's Crude Import Rose 92%, Gold Purchase Jumped 760% In May Year-On-Year

Huge spike in India’s crude and gold imports in May 2022 led to higher trade deficit

New Delhi:

India’s merchandise import in May 2022 was $60.62 billion, an increase of 56.14 per cent over $38.83 billion in May 2021. The main reason behind the huge rise in imports during the period under consideration was the stupendous 92 per cent and 760 per cent jump in purchase of crude oil and gold respectively on year-on-year basis.

In contrast, the country’s monthly value of merchandise export in May 2022 was just $37.29 billion, an increase of a mere 15.46 per cent over $32.30 billion in May 2021.

Due to this imbalance import and export, the trade deficit in May 2022 expanded to $23.33 billion, when it was just $6.53 billion in May 2021.

According to data released by Commerce Ministry on Thursday, crude oil and gold at 30 per cent and 9.6 per cent respectively formed the bulk of total share of the top 10 commodities imported in India during May 2022.

As per the data, India imported crude oil at a cost of $18.14 billion in May 2022 compared to $9.47 billion which it paid for the commodity in May 2021. This shows a 92 per cent jump in import of crude oil on year-on-year basis.

However India’s import of gold showed a huge spike in May 2022 over May 2021. In May 2022, gold import stood at $5.82 billion, a jump of 760 per cent from $677 million imported in May 2021.

India imports 85 per cent of crude oil, whose prices have jumped to touch almost $120 per barrel in the last few months due to the ongoing Russia-Ukraine war.

According to PTI, commenting on the figures, Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said the trade deficit is a cause of concern due to rise in import of gold.

“But we hope that rising gold imports will lead to an increase in exports of gems and jewellery,” he added.

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