Hindustan Times (Lucknow)

Exports dip 60% in April amid lockdown

Of 30 major exports, only iron ore and pharma recorded growth, while all import items declined

- Asit Ranjan Mishra asit.m@livemint.com

NEW DELHI: India’s trade basket plummeted to a record low in April as countries sealed their borders to arrest the spread of the coronaviru­s pandemic. Merchandis­e exports plunged 60.3% and imports fell 58.7% resulting in a trade deficit of $6.8 billion, data released by the commerce ministry on Friday showed.

The sharply weaker performanc­e in April followed a 34.6% drop in India’s merchandis­e exports in March when imports declined 28.7%. A nearly twomonth-long nationwide lockdown has hit India’s trade, which has been on a declining trend due to a slowing economy.

The government has been easing some of the restrictio­ns of the lockdown, which currently runs through Sunday. “Despite the graded relaxation­s in the current month, the levels of merchandis­e exports and imports are likely to remain subdued in May as well,” said Aditi Nayar, vice- president at Icra Ratings. “However, a pause in remittance­s may prevent a current account surplus in Q1 FY2021.”

Of the 30 major exporting items, only iron ore (17.5%) and pharmaceut­icals (0.25%) recorded positive growth in

April. Among the major import items, all registered negative growth during the month.

While the contractio­n in nonoil imports was broad-based, two-thirds of it was concentrat­ed in items such as gold and precious stones, electronic goods, machinery and coal. The sharp 59.3% decline in non-oil exports was driven by engineerin­g goods, gems and jewellery, and textiles.

Considered the severest in the world, the lockdown has led to large-scale job losses and difficulti­es for migrant workers. India’s unemployme­nt rate climbed to 27.1% in the week to 3

May before dropping to 23.97% in the following week, data from the Centre for Monitoring Indian Economy showed. Around 121.5 million people reported job losses in April, the survey said.

The Asian Developmen­t Bank on Friday said GDP in South Asia will be lower by $142 billion to $218 billion (3.9-6%) in fiscal 2021, mainly reflecting strict coronaviru­s-induced restrictio­ns in countries such as Bangladesh, India and Pakistan.

The World Trade Organizati­on (WTO) has projected global merchandis­e trade to drop between 13% and 32% in 2020 due to the pandemic.

 ?? BLOOMBERG ?? India’s trade deficit stood at $6.8 billion in the month.
BLOOMBERG India’s trade deficit stood at $6.8 billion in the month.

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