New Delhi: The exports had been cut down as the nation observed a lockdown due to the Coronavirus pandemic. Consequently, the import rate also dropped as the demand decreased. Thus, this the first time in 18 years, the nation did not have to face a trade deficit. Moreover, as the export exceeded import, the country faced a trade surplus. In June, $79 crores worth of trade surplus was recorded as per the information issued by the Trade and Commerce Ministry.
Recently, in March 2020, the RBI had released its annual financial report. Accordingly, the 2019-20 trade deficit has dropped to $157.7 billion. Earlier this year, the deficit was $180.3 billion. This has revealed that the national trade deficit is reducing. However, the rate of export decreased, as the demand reduced due to the Coronavirus lockdown from March. Besides, the trade surplus is a result of a decrease in trading over the last three months.
Moreover, as per the information published by the Trade and Commerce Ministry, in comparison to last year, the recent export has dropped by 12.51%. In June, the nation imported goods worth $21.91 billion. Thus, for the first time, the export is higher than the import in India. In June, about $79 crores worth of trade surplus was reported.
Over the last four months, the import is consistently decreasing. The export of engineering equipment and jewellery has reduced. However, this condition has improved in June than it was in April and May. But, the situation of import is still the same. The import of crude oil has reduced by 55.29% as compared to last year.
Furthermore, crude oil worth $4.93 billion was imported only within a month. Besides, gold import has also dropped by 77%. The drop in coal import was also reported.
In 2002, the nation reported a trade surplus worth $10 billion. Later, this surplus has recently been reported in June. In May, the multinational investment and brokerage organisation Barclays had anticipated trade surplus in India. Furthermore, Barclays predicted that the Indian export would exceed import in the ongoing financial year, and thus, the surplus would be close to $20 billion.
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