Categories: Business

India posts first trade surplus in 18 years

Photo: GOOGLE

Export Import data

new Delhi. The country's exports declined 12.51 percent in the month of June. This is the fourth consecutive month when exports have fallen. Total exports have come down mainly due to the fall in exports of petroleum, textiles, engineering goods and gems and jewelery. However, trade surplus has come for the first time in 18 years due to a 47.59 percent drop in imports. That is, for the first time, exports have increased more than imports. According to data released on Wednesday by the Ministry of Commerce and Industry, exports fell 12.41 percent to $ 21.91 billion in June on weak global demand due to Kovid-19. However, the export figures have improved in June. Because it fell by 60.28 percent in April and 36.47 percent in May.

According to the data, imports have also declined for the fourth consecutive month. It declined by 47.59 percent to $ 21.11 billion in June. The month had a trade surplus of $ 0.79 billion. This is the first time in the last 18 years that a surplus situation has arisen. Earlier, there was a trade surplus of 10 billion dollars in January 2002. Oil import in the month of June 55.

It was down 29 percent to $ 4.93 billion. Gold imports also fell by 77.42 percent to $ 60.87 million during this period. Among the sectors which have recorded negative growth in exports, gems and jewelery (-50 percent), leather (-40.5 percent), petroleum products (-31.65 percent), engineering goods (-7.5 percent), all types of clothing stitched – Stitched apparel (-34.84 percent), cashew (-27 percent). The sectors which have witnessed a decline in imports include gold, silver, transport equipment, coal, fertilizers, machinery and machine tools. However, exports of oilseeds, coffee, rice, tobacco, spices, medicines and chemicals registered an increase in June.

In his response to the figures, Indian Oilseeds and Produce Export Promotion Council (IOPEPC) chairman Khushwant Jain said that the government's measures to have good production and increase exports increased oilseed exports. Jain said, "The growth is expected to continue in the coming months as well. The Ministry of Commerce is addressing all our issues. ”Mohit Singla, chairman of the Trade Promotion Council of India (TPCI), said economic activity is slowly improving. Many workers are now returning to work, especially in manufacturing. Due to this, activities in the manufacturing sector are becoming normal and the industry is getting ready to meet the global demand. ICRA Principal Economist Aditi Nair said that commodity exports have improved in June but imports have remained weak, leading to a trade surplus. He said, "Looking at the delayed improvement in imports, we estimate that the merchandise trade deficit will be reduced to 10 to 12 billion dollars in the first quarter of 2020-21 from about $ 46 billion in the first quarter of 2019-20. On the current account front, there will be a surplus of about 14 to 16 billion dollars in the first quarter of 2020-21.

This post was published on July 16, 2020 12:21 am

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