December sees dip in exports of 0.8 pc

By Ashish Mitra --
Monday, 04 Jan, 2021

Taking a beating for the third straight month, India’s exports fell marginally by 0.8 per cent in December last even as the trade deficit widened to USD 15.71 billion due to the rise in imports.

Exports in December 2020 stood at USD 26.89 billion as compared to USD 27.11 in the same month of 2019, according to the preliminary data released by the Commerce Ministry.

The rate of contraction in the country’s outbound shipments has improved against a decline of 8.74 per cent in November mainly due to the increase in shipments of certain sectors such as gems and jewellery, engineering and chemicals.

After a gap of nine months, imports in December recorded a positive growth of 7.6 per cent at USD 42.6 billion. In February 2020, it had registered a rise of 2.48 per cent.

“India is thus a net importer in December 2020 with a trade deficit of USD 15.71 billion, as compared to a trade deficit of USD 12.49 billion, widened by 25.78 per cent,” the ministry said in a statement.

The trade deficit (the difference between imports and exports) at USD 15.71 billion was highest since July 2020. The country had witnessed trade surplus in June 2020. In April-December 2020-21, the country’s merchandise exports contracted by 15.8 per cent to USD 200.55 billion, as compared to USD 238.27 billion in the same period last fiscal.Imports during the nine months of the current fiscal declined by 29.08 per cent to USD 258.29 billion. It was USD 364.18 billion in April-December 2019-20.

December sees dip in exports of 0.8 pc. Taking a beating for the third straight month, India’s exports fell marginally by 0.8 per cent in December last even as the trade deficit widened to USD 15.71 billion due to the rise in imports.

Exports in December 2020 stood at USD 26.89 billion as compared to USD 27.11 in the same month of 2019, according to the preliminary data released by the Commerce Ministry.

The rate of contraction in the country’s outbound shipments has improved against a decline of 8.74 per cent in November mainly due to the increase in shipments of certain sectors such as gems and jewellery, engineering and chemicals.

After a gap of nine months, imports in December recorded a positive growth of 7.6 per cent at USD 42.6 billion. In February 2020, it had registered a rise of 2.48 per cent.

“India is thus a net importer in December 2020 with a trade deficit of USD 15.71 billion, as compared to a trade deficit of USD 12.49 billion, widened by 25.78 per cent,” the ministry said in a statement.

The trade deficit (the difference between imports and exports) at USD 15.71 billion was highest since July 2020. The country had witnessed trade surplus in June 2020. In April-December 2020-21, the country’s merchandise exports contracted by 15.8 per cent to USD 200.55 billion, as compared to USD 238.27 billion in the same period last fiscal.Imports during the nine months of the current fiscal declined by 29.08 per cent to USD 258.29 billion. It was USD 364.18 billion in April-December 2019-20.