India’s Merchandise exports rose for the first time in seven months registering a 6% growth in September. It is higher than the estimated 5.3% in provisional data released earlier. Increase in demand for engineering goods, petroleum products, pharmaceuticals and ready-made garments are the main reason behind this growth.
According to data released by the commerce ministry, Export of India rose to $27.6 billion, while imports contracted 19.6% to $30.3 billion, resulting in a trade deficit of $2.7 billion. Exports fell 21.3% to $125.3 billion, while imports contracted 40.1% to $148.7 billion, creating a trade deficit of $23.4 billion in the six months ended 30 September.
Due to declining external demand, the merchandise trade of India was weakening even before the corona pandemic.In 13 of the past 15 months, starting June 2019, the country’s exports were in the negative. Since March 2020, both exports and imports started reducing in high double digits, temporarily leading to a trade surplus in June for the first time in 18 years.
As per the Data compiled of the World Trade Organization (WTO) showed global merchandise trade declined by 21% in the June quarter. According to the trade body, global volumes of merchandise trade is set to decline 9.2% in 2020, followed by a 7.2% rise in 2021. In April, the trade body had projected global merchandise trade to drop by 13-32% in 2020 because of the covid-19 crisis.