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Exports fall by over 5% in October
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SME Times News Bureau | 13 Nov, 2020
India's merchandise exports in October declined by over 5 per cent on a year-on-year basis.
As
per the Ministry of Commerce and Industry's data released on Friday,
merchandise worth $24.89 billion were shipped-out during the month under
review as against $26.23 billion exported in the same period of the
previous year.
In terms of sequential movement, the country's
merchandise exports in September had risen by 5.99 per cent to $27.58
billion from $26.02 billion exported in the same period of the previous
year.
Accordingly, major commodities which have recorded negative
growth during October 2020 vis-a-vis October 2019 were 'petroleum
products, cashew, gems and jewellery, leather and leather products'
amongst others.
"Non-petroleum and non-gems and jewellery exports
in October 2020 were USD 20.31 Billion, as compared to USD 19.07
billion in October 2019, registering a positive growth of 6.51 per
cent," the ministry said.
Similarly, India's imports declined, it
fell by (-) 11.53 per cent to $33.61 billion in October from $37.99
billion reported for the corresponding month of 2019.
In
September, imports declined by (-) 19.60 per cent to $30.31 billion from
$37.69 billion reported for the corresponding month of 2019.
"Oil
imports in October 2020 were USD 5.98 Billion, which was 38.52 per cent
lower in Dollar terms, compared to USD 9.73 billion in October 2019,"
the statement said.
"Non-oil imports in October 2020 were
estimated at USD 27.62 billion which was 2.24 per cent lower in Dollar
terms compared to USD 28.26 billion in October 2019."
"Non-oil
and non-gold imports were USD 25.12 billion in October 2020, recording a
negative growth of (-) 4.90 per cent, as compared to non-oil and
non-gold imports of USD 26.42 billion in October 2019."
Consequently,
India's trade deficit narrowed to $8.71 billion on a year-on-year basis
in October from $11.75 billion reported for the corresponding month of
last year.
The trade deficit had narrowed to $2.72 billion in
September from $11.67 billion reported for the corresponding month of
the previous year.
"The merchandise trade deficit for October
2020 is in line with our estimates, printing at the highest level for
this fiscal year," said ICRA's Principal Economist Aditi Nayar.
"As
the economic recovery strengthens, we expect the current account
surplus to decline substantially in Q3 FY2021, from the $20 billion
recorded in Q1 FY2021 and the $12-14 billion expected for Q2 FY2021."
According
to EEPC India Chairman Mahesh Desai: "With the second wave of Covid 19
hitting Europe, and the US reeling under the pandemic, Indian exports
face a tough winter of global trade."
In addition, Suman
Chowdhury, Chief Analytical Officer Acuite Ratings & Research said:
"The healthy pickup in exports seen in September could not be sustained
in October, leading to a YoY drop of 5.1 per cent."
"The primary
factor behind the slip in exports has been the substantial drop in
petroleum product shipments on a sequential basis by 54 per cent in
October. Excluding POL, exports have seen a marginal YoY growth of 2 per
cent given the steady growth in agricultural, minerals and
pharmaceutical exports."
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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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