Exports increase for the 1st time in 6 months

October 5, 2020 | 0 Comment

According to government data, India’s goods exports posted a 5.27% year-on-year growth from US$26.02 last September to US$ 27.4 billion in September 2020, following six months of continuous fall. Some of the sectors which registered growth include cereals (304.71%), iron ore (109.52%), rice (92.44%), oil meats (43.9%%) and carpets (42.89%%).

Meanwhile, India’s imports fell by 19.6% yoy from US$ 37.69 billion in September 2019 to US$ 30.31 billion in September 2020. The top 5 commodities that recorded a steep fall include silver (-93.92%), cotton (-82.02%), newsprint (-62.44%), gold (-52.85%) & transport equipment (-47.08%).

Consequently, India’s trade deficit narrowed, dropping from US$ 11.67 billion in September 2019 to US$ 2.91 billion in September 2020. However, given the grim economic scenario across the globe, experts opine that it may be too early to celebrate. “While the reversal in trend for merchandise exports turning into positive territory in September 2020 is a matter of relief, the challenges in the external trade would continue given the present state of global health emergency and its economic impact on the major economies,” stated Mahesh Desai, Chairman, EEPC India.

Exports increase for the 1st time in 6 months