New Delhi, June 16 -- India's merchandise trade deficit narrowed to $21.88 billion in May, data from the ministry of commerce and industry showed on Monday.

Merchandise exports fell to $38.73 billion in May from $39.59 billion in the year-ago period. Goods imports declined to $60.61 billion last month from $61.68 billion a year ago.

In April, the merchandise trade deficit rose to a five-month high of $26.42 billion on the back of higher imports, even as exports increased.

After Trump's tariffs and the India-Pakistan conflict, traders now face the challenge of escalating tensions in West Asia after Israel attacked Iran on 13 June.

The armed conflict between Iran and Israel has escalated concerns over the safety of cargo passing through...