India records export fall in June but posts trade surplus in a decade as coronavirus hits import
New Delhi/IBNS: India has exhibited a negative growth in overall exports (merchandise and services combined) in April-June 2020-21 at USD 101.02 billion, which is down by (-)25.92 per cent over the same period last year, as per data released by Ministry of Commerce and Industry on Wednesday.
The overall imports in April-June 2020-21 are estimated to be USD 89.31 billion, exhibiting a negative growth of (-)45.10per cent over the same period last year.
"Exports in June 2020 were USD 21.91billion, as compared to US D25.01billion in June 2019, exhibiting a negative growth of (-)12.41per cent. In Rupee terms, exports were Rs. 1,65,898.85crore in June2020, as compared to Rs. 1,73,682.55crore in June 2019, registering a negative growth of (-) 4.48per cent," the ministry said in a statement.
"Imports in June 2020 were USD 21.11billion (Rs.1,59,892.42crore), which was 47.59 per cent lower in Dollar terms and 42.85per cent lower in Rupee terms over imports of USD 40.29 billion (Rs2,79,771.07crore) in June 2019," the statement said.
Cumulative value of imports for the period April-June 2020-21 was USD60.44billion (Rs.4,58,395.18crore), as against USD127.04billion (Rs.8,83,652.93crore) during the period April-June 2019-20, registering a negative growth of (-)52.43per cent in Dollar terms (negative growth of (-)48.12per cent in Rupee terms).
However, the country registered a trade surplus for June 2020, which was estimated at USD 0.79 billion as against the deficit of USD 15.28 billion in June 2019. This is the first time in the last decade that India is a net exporter.
The oil imports in June 2020 were USD 4.93 billion (Rs. 37,341.70crore), which was 55.29 per cent lower in Dollar terms (51.24percent lower in Rupee terms), compared to USD11.03billion (Rs. 76,586.73crore) in June 2019.
Responding to India's export data, Engineering Export Promotion Council (EEPC) India Chairman Mahesh Desai on Wednesday said: "Although India's overall exports in June, 2020 are down year on year by about 12 per cent, the shipments have shown recovery, as compared to the previous two months and downside seems to have bottomed out."
As more and more markets open up, we expect further uptick in the exports in the coming months, he said.
However, Desai said the fiscal 2020-21 appears to be full of challenges and India would surely need an out-of-box strategy to face the global downturn, owing to the unprecedented pandemic.
"The manufacturing needs to be supported in further opening up of operations both by the Centre and the states," he said.