September recovery proves short-lived as exports fall 5% in Oct

Covid-induced lockdowns in advanced nations hit exports, trade deficit at nine-month high

The recovery in exports seen in September was short-lived as outbound shipments contracted by 5.12 per cent in October as the second wave of Covid-19 hit Europe and the US continued to reel from the pandemic's impact. Almost all high value items – petroleum products, gems and jewellery, engineering goods or electronic goods — contracted except for pharmaceuticals.

Exports had risen five per cent in September, raising hopes of a recovery in the second half of the fiscal. At $27.58 billion, exports in September had almost reached the pre-Covid level of $27.65 billion. However, it fell again to $24.89 billion in