Export falls 35 per cent & trade deficit narrows in March

India’s merchandise exports in March 2020 dropped almost 35 per cent YoY, owing to a sharp fall in shipments of leather, gems & jewellery and petroleum products. This seems to be the biggest decline in monthly exports since the financial crisis of 2008, when the shipments plummeted nearly 33 per cent in March 2009. However, the trade deficit (excess of import over export) narrowed to US$9.76 billion in March 2020 from $11.00 billion, a year ago.  

As per the data released by Commerce Ministry, merchandise exports fell to US$ 21.41 billion in March 2020, as compared to $32.72 billion in the corresponding month of the previous year. In terms of rupee, it was down by almost 30 per cent to Rs 1,59,157.98 crore in March 2020, as compared to Rs 2,27,318.25 crore in March 2019. The cumulative value of exports for the period April to March 2019-20 was US$ 314.31 billion as compared to US$ 330.08 billion during the corresponding period of the previous year. In rupee terms, it was down by 3.52 per cent to Rs 22,26,566.71 crore from Rs 23,07,726.19 crore.  

Furthermore, imports during March 2020, fell nearly 28.7 per cent to US$ 31.16 billion from US$ 43.72 billion in March 2019 while, in rupee terms, it fell by 23.7 per cent to Rs 2,31,710.92 crore from Rs 3,03,753.76 crore. The cumulative value of imports for the period of April-March 2019-2020 was US$ 467.19 billion, as compared to US$514.08 billion in the corresponding period of the previous year. In rupee terms, it was Rs 33,07,977.05 crore, down by almost eight per cent from Rs 35,94,674.61 crore.

Oil imports in March fell by 15 per cent to US$ 10.01 billion from US$ 11.78 billion in March 2019. Non-oil imports during March 2020 were estimated at $21.15 billion, which was 33.78 per cent lower than non-oil imports of $31.94 billion in March 2019. Non-oil and non-gold imports were $19.92 billion in March 2020, down by 30.47 per cent over the same period last year.