Exports risesApprox Read Time: 5 minutes
- India’s merchandise exports rose for the first time in seven months in February growing by 2.91% to $27.65 billion, according to the commerce ministry data.
- Despite global challenges, Indian merchandise exports once again enter into growth trajectory in February after a gap of 6 months with exports going up 2.9% to $27.65 billion in February.
- Trade deficit was pegged at a little under $9.9 billion in February, compared to $9.7 billion a year ago and $15 billion in January.
- The export growth was led electronic goods and chemicals which grew at 37% and 16% respectively.
- But there were signs of a slowdown in segments such as iron ore, where China is a key market, with the growth rate moderating to 38% in February compared to an over 105% jump in January.
- Non-petroleum and Non-Gems and Jewellery exports in February 2020 were USD 21.23 billion, as compared to USD 20 billion in February 2019, exhibiting a positive growth of 6.16%.
- Imports in February 2020 were USD 37.50 billion, which represents a 2.5% growth in Dollar terms.
- Iron & Steel imports fell 26% while Chemical imports fell about 15%.
- In February, oil shipments were up 14% at around $10.8 billion, while gold imports fell 8.5% to $2.4 billion.
- Non-Oil and Non-Gold imports were USD 24 billion in February 2020, recording a negative growth of (-) 0.87 per cent compared to a year earlier.
Trade in Services:
- Exports: Services exports in January 2020 were USD 19 billion, registering a positive growth of 7% in dollar terms.
- Imports: Services imports in January 2020 were USD 12 billion, registering a positive growth of about 9% in dollar terms.
- Several industries are fearing massive slowdown in coming months due to Covid-19.
- The impact of factory shutdowns in China and other parts of the world is not yet reflected in the data.
- With supply lines for products ranging from pharma ingredients and plastics to electronics drying up, economic activity and imports are expected to be impacted.
- Also, a massive fall in crude oil prices will shrink the import bill.