India Records Trade Surplus in Over 10 Years Amid COVID-19

A general view of a container terminal is seen at Mundra Port in the western Indian state of Gujarat. Image used for representation.

(Photo: Reuters)

Even though both exports and imports were deep in the red due to the COVID-19 pandemic, official data showed that India emerged as a net exporter in June. As per the data, the country recorded a trade surplus of $0.79 billion in June as against a deficit of $15.28 billion during the like period of 2019.

"This is the first time in the last decade that India is a net exporter," the Ministry of Commerce and Industry said in a statement.

Accordingly, the contraction in India’s exports eased in June, as merchandise exports stood at $21.91 billion.

The contraction caused by COVID-19 pandemic narrowed down to (-) 12.41 percent in June on a year-on-year basis from a (-) 36 percent fall reported in May.

On a YoY basis, the country's exports fell during the month under review to $21.91 billion from $25.01 billion reported for the corresponding period of the previous year.

In terms of sequential movement, the country's merchandise exports in May stood at $10.36 billion.

"Major commodity groups which have recorded positive growth during June 2020 vis-a-vis June 2019 are iron ore, oil seeds, rice, oil meal, spices, other cereals, organic and inorganic chemicals, cereals preparations and miscellaneous processed items, fruits and vegetables, drugs and pharmaceuticals, tobacco and coffee," the statement said.

According to the data, the non-petroleum and non-gems and jewellery exports in June were $18.48 billion, as compared to $19.15 billion in June 2019, exhibiting a negative growth of (-) 3.51 percent.

However, the country’s imports declined at a far higher rate than exports in June.

India's June imports declined by (-) 47.59 percent to $21.11 billion from $40.29 billion reported for the corresponding month of 2019.

In May, imports had declined by 51.05 percent to $22.20 billion from $45.35 billion reported for the corresponding month of 2019.

(This IANS copy has been edited for length.)