India posts trade surplus in June 2020 after 18 years

Exports decline 12.4% and imports dips 47.6% in June 2020

India's merchandise exports declined 12.4% to US$ 21.91 billion in June 2020 over a year ago. Meanwhile, merchandise imports plunged 47.6% to US$ 21.11 billion. India recorded trade surplus of $ 0.79 billion in June 2020 after a gap of 18 years against deficit US$ 15.28 billion in June 2019.

Oil imports declined 55.3% to US$ 4.93 billion, while the non-oil imports dipped 44.7% to US$ 16.18 billion in June 2020 over June 2019. The share of oil imports in total imports was 23.4% in June 2020, compared with 27.4% in June 2019. The price of India's basket of crude oil skidded 34.9% to US$ 40.63 per barrel in June 2020 over June 2019.

Among the non-oil imports, the major contributors to the overall dip in imports were gold imports declining 77.4% to US$ 0.61 billion, electronic goods 34.1% to US$ 3.17 billion, pearls, precious & semi-precious stones 70.0% to US$ 0.63 billion, electrical & non-electrical machinery 42.0% to US$ 1.73 billion and coal, coke & briquettes, etc 55.7% to US$ 0.95 billion, while imports of iron & steel also slipped 56.1% to US$ 0.63 billion, artificial resins, plastic materials, etc 52.1% to US$ 0.63 billion, organic & inorganic chemicals 32.2% to US$ 1.28 billion and non-ferrous metals 52.3% to US$ 0.54 billion.

Further, the imports of transport equipment declined 40.3% to US$ 0.59 billion, wood & wood products 50.9% to US$ 0.26 billion, crude & manufactured fertilisers 17.0% to US$ 0.63 billion and chemical material & products 13.2% to US$ 0.57 billion, while the imports of professional instrument, optical goods, etc also fell 16.2% to US$ 0.35 billion, metaliferrous ores & other minerals 6.3% to US$ 0.33 billion and silver 67.1% to US$ 0.14 billion. However, the imports of vegetable oil moved up 8.5% to US$ 0.71 billion in June 2020.

On exports front, the gems & jewellery recorded a dip in exports by 50.1% to US$ 1.56 billion, followed by petroleum products 31.6% to US$ 1.87 billion, engineering goods 7.5% to US$ 6.07 billion, and rmg of all textiles 34.8% to US$ 0.80 billion. The exports also declined for electronic goods by 22.5% to US$ 0.72 billion, leather & leather products 40.5% to US$ 0.24 billion, and man-made yarn/fabrics/made-ups etc. 32.0% to US$ 0.25 billion.

Further, the exports declined for meat, dairy & poultry products by 25.9% to US$ 0.20 billion, marine products 9.7% to US$ 0.48 billion and cotton yarn/fabrics/made-ups, handloom products etc. 3.8% to US$ 0.76 billion in June 2020. The exports of plastic & linoleum also fell 4.4% to US$ 0.64 billion, ceramic products & glassware 10.9% to US$ 0.21 billion, and mica, coal & other ores, minerals including processed minerals 1.1% to US$ 0.31 billion.

However, exports for organic & inorganic chemicals improved 19.1% to US$ 1.96 billion, drugs & pharmaceuticals 9.9% to US$ 2.02 billion, rice 32.7% to US$ 0.68 billion, iron ore 63.1% to US$ 0.35 billion, spices 22.9% to US$ 0.36 billion, and fruits & vegetables 11.0% to US$ 0.19 billion in June 2020.

Merchandise exports in rupees declined 4.5% to Rs 165899 crore, while imports dipped plunged 42.8% to Rs 159892 crore in June 2020 over June 2019. The trade surplus was Rs 6006 crore in June 2020 compared with trade deficit of Rs 106089 crore in June 2019.

India's merchandise exports fell 36.7% to US$ 51.32 billion, while merchandise imports declined 52.4% to US$ 60.44 billion in April-June 2020. The decline in imports was driven by a 62.5% fall in oil imports to US$ 13.08 billion.

India's merchandise trade deficit eased to US$ 9.12 billion in April-June 2020 from US$ 45.96 billion in April-June 2019.

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