India exports contract 12.66 per cent in August; trade deficit narrows to $6.77 billion

Contracting for the sixth straight month, India’s merchandise exports slipped 12.66 per cent to $22.70 billion in August 2020 as compared to the same period last year, on account of a fall in the shipments of petroleum, leather, engineering goods, gems and jewellery items. Trade deficit and the gap between imports & exports, narrowed to $6.77 billion in August 2020 from $13.86 billion, a year ago.

As per the data released by the Commerce Ministry, merchandise exports fell by 12.66 per cent to $22.70 billion in August 2020, as compared to $25.99 billion in the same month, a year ago. In rupee terms, it was down by 8.33 per cent to Rs 1,69,513.81 crore in August 2020, as compared to Rs 1,84,921.23 crore in August 2019. Cumulative value of exports for the period between April and August 2020-21 was $97.66 billion as against $133.14 billion during the period from April to August 2019-20, registering a negative growth of 26.65 per cent. In terms of rupees, it was down by 20.73 per cent to Rs 7,35,835.87 crore from Rs 9,28,243.85 crore.

Non-petroleum and non-gems & Jewellery exports in August 2020 were $18.95 billion, as compared to $19.57 billion in August 2019, exhibiting a negative growth of 3.17 per cent. Non-petroleum and non-gems & Jewellery exports in April-August 2020-21 were $83.24 billion, as compared to $99.65 billion for the corresponding period in 2019-20.

On the other hand, imports during August 2020 too decreased by 26.04 per cent to $29.47 billion as compared to $39.85 billion in August 2019, while in rupee terms, it was down by 22.38 per cent to Rs 2,20,083.69 crore from Rs 2,83,530.41 crore in August 2019. Cumulative value of imports for the period of April-August 2020-21 was $118.38 billion, as against $210.39 billion during the period from April to August 2019-20, registering a negative growth of 43.73 per cent. In rupee terms, it was Rs 8,91,978.43 crore, down by 39.18 per cent from Rs 14,66,659.90 crore in the same period last year. 

Oil imports in August 2020 were $6.42 billion, which was 41.62 per cent lower, compared to $11.00 billion in August 2019. Oil imports between April and August 2020-21 were $26.03 billion, which were 53.61 per cent lower as compared to $56.11 billion, over the same period last year. Non-oil imports during August 2020 were estimated at $23.05 billion which was 20.10 per cent lower than non-oil imports of $28.85 billion in August 2019. It was $19.35 billion in August 2020, down by 29.61 per cent over the same period last year. Non-oil and non-gold imports were $86.17 billion in April-August 2020-21, down 38.34 per cent, over the same period last year.