India's May trade deficit likely remained in double digits

India's trade deficit in May likely to remained at USD 10.6bn, similar to April. Gold imports likely declined 25% m/m as festival-related demand diminished and pent-up demand was exhausted. 

"However, sluggish exports and still-high non-gold imports kept the trade deficit in double digits. Exports is likely to have contracted for the sixth consecutive month in May on a still-weak level of economic activity at India's trading partners.  A 17% y/y decline is expectd in May exports after they contracted 14% in April. Meanwhile, imports likely fell 14% y/y versus 7.5% prior on lower gold demand", said Standard Chartered in a report on Friday.