India's Export Declines, Import Increases, Unemployment Rate Jumps: Report

Data released by the government has shown that the unemployment rate in India has jumped to 5.6 per cent in May this year as compared to the previous month. The information published on Monday, June 16, suggested that the unemployment rate (UR) among persons of all age groups during May 2025 rose to 5.6 per cent from 5.1 per cent in April 2025, Press Trust of India reported.

Unemployment has increased significantly among people in the age group of 15-29, with a reported 17.9 per cent rise in May from 17.2 per cent in April. The data indicated that females have higher joblessness, at around 5.8 per cent, compared to 5.6 per cent among males in May 2025.

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While the unemployment figures showed a slight increase in rural areas, joblessness increased in urban areas to 17.9 per cent in May from 17.2 per cent in April. Notably, the data disclosed that the Labour Force Participation Rate (LFPR) among people aged 15 years and above dipped to 54.8 per cent in May from 55.6 per cent during April 2025.

While India’s export rate has declined, the import rate has increased, with China being the top source. India’s goods exports also contracted 2.17 per cent (year-on-year) to $38.73 billion in May, with sectors including petroleum products, gems & jewellery and engineering posting a decline. The US was the country’s top export destination, while China constituted the top source of imports. Imports from China increased by 21.61 per cent to $10.31 billion.

India’s exports faced trouble as the US braced for tariff hikes, with key sectors such as electronics, seafood, and gold being impacted. India’s increasing imports from China originate from the neighbouring country’s competitive pricing, established supply chain, lower production costs, and attraction of Indian businesses and customers.

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Indian industries also rely on Chinese components and raw materials for manufacturing processes. The increasing dependency on China has caused opposition targeting the ruling regime, noting that the government is willing to compromise national security considerations to benefit the Adani business enterprise, alleging favouritism.

Meanwhile, domestic passenger vehicle wholesales came down by 0.8 per cent at 3,44,656 units in May this year when compared to 347,492 units in the same month last year, according to the Society of Indian Automobile Manufacturers.