India's May trade gap narrows as exports rise; U.S. trade talks in focus

By Shivangi Acharya and Manoj Kumar

NEW DELHI, June 15 (Reuters) - India's merchandise commercialized shortage narrowed marginally successful May arsenic higher exports offset portion of the import bill, portion firms navigated volatile vigor prices, Middle East disruptions ‌and ongoing commercialized negotiations with the United States.

The merchandise commercialized shortage narrowed to $28.21 cardinal successful May from $28.38 cardinal successful ‌April, beneath economists' forecast of $28.72 billion, a Reuters canvass showed.

Merchandise exports roseate to $45.2 cardinal successful May from $43.56 cardinal successful the erstwhile month, authorities information showed connected Monday, ​while imports roseate to $73.41 cardinal against a six-month precocious of $71.94 cardinal successful April.

The information underscores unit connected India to prolong exports and incorporate import costs arsenic it seeks greater U.S. marketplace access, with April-May goods exports astir level astatine $17.29 cardinal versus $17.21 cardinal a twelvemonth earlier.

Trade Secretary Rajesh Agrawal said U.S. Trade Representative Jamieson Greer is owed to sojourn India from June 23 to 24 for further talks connected an ‌interim commercialized agreement.

"Discussions with USTR volition beryllium centred ⁠around giving last touches to our interim deal," Agrawal told reporters, adding that New Delhi would question wide answers connected the USTR's projected caller tariffs nether a Section 301 probe portion finalising the pact.

New ⁠Delhi is seeking a commercialized woody with the United States that would springiness its exports preferential tariff access, though talks person been analyzable by U.S. investigations into alleged overcapacity successful sectors specified arsenic textiles and steel.

Trade is expected to diagnostic successful discussions betwixt U.S. President Donald Trump ​and ​Indian Prime Minister Narendra Modi connected the sidelines of this week's acme ​in France, though a woody is not expected to ‌be finalised.

Relations person been strained by U.S. tariffs connected Indian goods and Trump's repeated claims, denied by New Delhi, that helium helped extremity India's struggle with Pakistan past year.

Sentiment has improved successful caller weeks with Trade Minister Piyush Goyal saying earlier this period that the archetypal tranche of a bilateral commercialized statement could beryllium concluded by mid-July.

U.S.-IRAN PACT SEEN EASING PRESSURE

India's commercialized numbers travel arsenic U.S. and Iranian officials said they agreed connected a model to extremity their war, halt the U.S. blockade of Iran and reopen ‌the Strait of Hormuz, a preliminary pact that sent lipid prices lower.

India imports ​over 80% of its crude and astir 60% of its cooking gas, ​much of it from the Middle East, truthful the expected ​reopening of the Strait of Hormuz could easiness its import measure and exporters' freight, security and vigor ‌costs.