Trade deficit narrows to US$ 3.15 billion in May 2020
India's merchandise exports dipped 36.5% to US$ 19.05 billion in May 2020 over a year ago. Meanwhile, merchandise imports also declined 51.0% to US$ 22.20 billion. The trade deficit fell 79.5% to US$ 3.15 billion in May 2020 from US$ 15.36 billion in May 2019.Oil imports declined 72.0% to US$ 3.49 billion, while the non-oil imports dipped 43.1% to US$ 18.71 billion in May 2020 over May 2019. The share of oil imports in total imports was 15.7% in May 2020, compared with 27.4% in May 2019. The price of India's basket of crude oil skidded 56.3% to US$ 30.60 per barrel in May 2020 over May 2019.
Among the non-oil imports, the major contributors to the overall dip in imports were gold imports declining 98.4% to US$ 0.08 billion, electronic goods 40.3% to US$ 2.88 billion, pearls, precious & semi-precious stones 77.1% to US$ 0.38 billion, machinery, electrical & non-electrical 34.4% to US$ 2.24 billion and coal, coke & briquettes, etc 44.9% to US$ 1.31 billion, while imports of organic & inorganic chemicals also slipped 33.1% to US$ 1.45 billion, artificial resins, plastic materials, etc 31.4% to US$ 0.97 billion, transport equipment 32.3% to US$ 0.81 billion and iron & steel 19.4% to US$ 1.22 billion.
Further, the imports of metaliferrous ores & other minerals declined 48.3% to US$ 0.30 billion, vegetable oil 29.3% to US$ 0.57 billion, non-ferrous metals 18.4% to US$ 1.04 billion and professional instrument, optical goods, etc 30.8% to US$ 0.30 billion, while the imports of chemical material & products also fell 17.8% to US$ 0.60 billion, fertilisers, crude & manufactured 15.0% to US$ 0.57 billion, wood & wood products 12.7% to US$ 0.48 billion and silver 12.5% to US$ 0.33 billion in May 2020.
On exports front, the petroleum products recorded a dip in exports by 68.5% to US$ 1.63 billion, followed by gems & jewellery 68.8% to US$ 1.06 billion, engineering goods 24.2% to US$ 5.65 billion, RMG of all textiles 66.2% to US$ 0.52 billion, and cotton yarn/fabrics/made-ups, handloom products etc 47.5% to US$ 0.46 billion. The exports also declined for electronic goods by 45.3% to US$ 0.50 billion, leather & leather products 75.1% to US$ 0.11 billion, organic & inorganic chemicals 12.7% to US$ 1.82 billion, and man-made yarn/fabrics/made-ups etc 58.6% to US$ 0.17 billion.
Further, the exports declined for meat, dairy & poultry products by 56.4% to US$ 0.14 billion, mica, coal & other ores, minerals including processed minerals 35.6% to US$ 0.22 billion and marine products 18.1% to US$ 0.43 billion in May 2020. Further, the exports of ceramic products & glassware also fell 33.5% to US$ 0.16 billion, plastic & linoleum 6.6% to US$ 0.72 billion, and cereal preparations & miscellaneous processed items 17.4% to US$ 0.11 billion.
However, exports for drugs & pharmaceuticals improved 17.3% to US$ 1.98 billion, and iron ore 103.0% to US$ 0.46 billion, and rice 7.6% to US$ 0.69 billion, and spices 10.5% to US$ 0.32 billion in May 2020.
Merchandise exports in rupees plunged 31.1% to Rs 144166 crore, while imports rose declined 46.9% to Rs 167978 crore in May 2020 over May 2019. The trade deficit eased to Rs 23812 crore in May 2020 compared with Rs 107168 crore in May 2019.
India's merchandise exports fell 47.5% to US$ 29.41 billion, while merchandise imports declined 54.7% to US$ 39.32 billion in April-May 2020. The decline in imports was driven by a 65.8% fall in oil imports to US$ 8.15 billion. India's merchandise trade deficit eased to US$ 9.91 billion in April-May 2020 from US$ 30.69 billion in April-May 2019.
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