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Exports plunge over 60 pc in April amid COVID-19 pandemic
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SME Times News Bureau | 15 May, 2020
The Covid-19 global outbreak heavily dented India's merchandise exports
in April, as they plunged by over 60 per cent on a year-on-year basis to
$10.36 billion from $26.07 billion reported for the corresponding
period of the previous year.
"The decline in exports has been
mainly due to the ongoing global slowdown, which got aggravated due to
the current Covid-19 crisis. The latter resulted in large-scale
disruptions in supply chains and demand resulting in cancellation of
orders," the Ministry of Commerce and Industry said in a statement.
"Except
for 'Iron Ore' and 'Drugs & Pharmaceuticals' which registered a
growth of 17.53 per cent and 0.25 per cent respectively, all other
commodity or commodity groups have registered negative growth in April
2020 vis-a-vis April 2019.
"Similarly, imports declined by 58.65
per cent to $17.12 billion in April from $41.40 billion reported for
the corresponding month of 2019.
"Oil imports in April 2020 were
$4.66 billion, which was 59.03 per cent lower in Dollar terms, compared
to $11.38 billion in April 2019," the statement said.
"Non-oil
imports in April 2020 were estimated at $12.46 billion which was 58.50
per cent lower in Dollar terms, compared to $30.02 billion in April
2019.
"Besides, non-oil and non-gold imports were $12.46 billion
in April 2020, recording a negative growth of (-) 52.18 per cent, as
compared to non-oil and non-gold imports of $26.05 billion in April
2019."
Consequently, India's trade deficit narrowed to $6.76
billion on a year-on-year basis in April from $15.33 billion reported
for the corresponding month of last year.
"Despite the graded
relaxations in the current month, the levels of merchandise exports and
imports are likely to remain subdued in May 2020 as well," ICRA's
Principal Economist Aditi Nayar said.
"However, a pause in remittances may prevent a current account surplus in Q1 FY2021."
According
to EEPC India Chairman Ravi Sehgal, over 60 per cent drop in
merchandise exports during April is a not surprising "given a near halt
in the global trade".
"While the trade, especially of
essentials like food and medicine is partially opening across the
international borders, it would be a long haul before normalcy returns
in the wake of the world grappling with the Covid-19 pandemic.
"Exporting
units , especially in the engineering sectors, are largely MSMEs and
face an existential crisis. While the MSME package would provide
liquidity infusion, the units need straightforward fiscal support like
waiving of electricity charges, water bills, and wage support for
survival," he said.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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