Foreign Exports saw a negative growth of 33.66% and Imports dipped by 48.31% as the government released the estimated data for trade for May. According to the figures released, exports in May amounted to Rs.1,44,166.01 crore as compared to Rs. 2,09,280.62 crore in the same month the previous year registering a negative growth rate of 31.11%.
There was some good news for the agriculture sector as Spices and Rice showed a growth of 10.55% and 7.64%, respectively. Iron Ore and Pharmaceuticals were the only other sectors to show positive growth.
However, other exports of the Agriculture sector suffered like fruits meat, dairy, poultry products at a negative growth rate of 56.38%, Cereals at 49.53%, Cashew at 32.86%, Tea at 26.94%, oilseeds at 18.41%, and fruits and vegetables at 1.31% negative growth.
The imports were billed at Rs.1,67,977.68 crore compared to Rs.3,16,448.93 crore in the previous year, thus showing a decline of 46.92%.while the cumulative value of imports declined from Rs.6,03,881.86 crore to Rs.2,98,502.76 crore a drop of 50.57%.
The import of crude oil saw a decline of 62.66% from Rs. 1,65,811.82 crore in May 2019 to Rs. 61,917.72 crore in May 2020. The Brent price has decreased by 56.02% over the same period according to the figure of the World Bank.
The services sector was estimated at USD 16.45 billion, which is a decline of 8.92% in exports as compared to the previous year while the imports in was adjudged to be at USD 9.30 billion drops of 18.43 % from last year.
The Trade Deficit in Merchandise was at USD 3.12 billion compared to USD15.36 billion for the same period the previous year. The trade balance in Services was at USD 7.15 billion. The overall trade balance was estimated to be at USD 4.37 billion as compared to USD 17.84 billion the previous year.
The trade figures have shown us the impact of the lockdown as the country was in complete lockdown for April and early weeks of May that brought the economy to a standstill. Sectors like Pharmecuiticals showed growth due to large demand for medicines, especially hydroxychloroquine while rice and spices growth can be attributed to the surplus production of the country.
The figures have been dismal, however with the partial opening of the economy in May, the figures can only go up from here, but when they will reach the pre COVID levels remains to be seen.
