TRADE TURNS SURPLUS AFTER 18 YEARS
INDIA POSTS FIRST TRADE SURPLUS IN 18 YEARS AS CORONAVIRUS HITS IMPORTS
India's exports fell for the fourth straight month in June as shipments of key segments like petroleum and textiles declined but the country's trade turned surplus for the first time in 18 years as imports dropped by a steeper 47.59%.
Exports in value terms declined by 12.41% to USD 21.91 billion in June on weak global demand due to COVID-19, official data released on Wednesday showed.The outward shipments in June, however, recovered from a steeper decline of 60.28% in April and 36.47% in May.
Imports also plunged for the fourth month in a row by 47.59% to USD 21.11 billion in June, leaving a trade surplus of USD 0.79 billion, the first time in the last 18 years. Last time it was in January 2002 when India posted a trade surplus of USD 10 million.
Oil imports declined by 55.29% to
USD 4.93 billion in June. Gold imports plunged 77.42% to USD 608.7 million.
Exports sectors which recorded negative growth include gems and jewellery (-50%), leather (-40.5%), petroleum products (-31.65%), engineering goods (-7.5%), ready-made garments (RMG) of all textiles (-34.84%), and cashew (-27%).
Import segments which recorded negative growth include gold, silver, transport equipment, coal, fertiliser, machinery and machine tools.
However, exports of oil seeds, coffee, rice, tobacco, spices, pharma, and chemicals reported positive growth in
June. Commenting on the numbers, Indian Oilseeds and Produce Export Promotion Council (IOPEPC) Chairman Khushwant Jain said that oil seed exports are recording growth on account of healthy output and steps taken by the government to promote shipments.
"The growth rate will continue in the coming months also. The commerce ministry is resolving all our issues," Jain said.
Mohit Singla, the Chairman of Trade Promotion Council of India (TPCI) said as the forward and backward linkages of economic activity are gradually repairing, the supply shock is fading and thus making produce readily available to meet demand.
"Many workers are returning back to work mainly in the manufacturing sector which is normalising the manufacturing activities and thus preparing industry to meet the global demand," Singla said.