COVID-19 affects May exports adversely; exports plunge 36 per cent

Dwindling for the third straight month, India's merchandise exports shrank by 36.47 per cent in May 2020 on weak global demand due to COVID-19, as compared to the same period of last year, leading to significant decline in shipments by key sectors like engineering, petroleum and textiles. However, the drop in exports during the month under review is low as compared to 60.28 per cent fall in April 2020. Trade deficit, gap between imports and exports, narrowed to US$ 3.15 billion in May 2020 from US$ 15.36 billion a year ago.

According to data released by the Commerce Ministry, merchandise exports dipped by 36.47 per cent to US$ 19.05 billion in May 2020, as compared to US$ 29.99 billion in the same month a year ago. Cumulative value of exports for the period April-May 2020-21 was US$ 29.41 billion as against US$ 56.07 billion during the period April-May 2019-20, registering a negative growth of 47.54 per cent.

Non-petroleum and non-gems and jewellery exports in May 2020 were US$ 16.36 billion, as compared to US$ 21.42 billion in May 2019, exhibiting a negative growth of 23.61 per cent. Non-petroleum and non-gems and jewellery exports in April-May 2020-21 were US$ 25.44 billion as compared to US$ 40.96 billion for the corresponding period in 2019-20.

On the other hand, imports during May 2020 too decreased by 51.05 per cent to US$ 22.20 billion as compared to US$ 45.35 billion in May 2019. Cumulative value of imports for the period April-May 2020-21 was US$ 39.32 billion, as against US$ 86.75 billion during the period April-May 2019-20, registering a negative growth of 54.67 per cent.

Oil imports in May 2020 were US$ 3.49 billion, which were 71.98 per cent lower, compared to US$ 12.44 billion in May 2019. Oil imports in April-May 2020-21 were US$ 8.15 billion which were 65.79 per cent lower compared to US$ 23.82 billion, over the same period last year. Non-oil imports during May 2020 were estimated at US$ 18.71 billion which was 43.13 per cent lower than non-oil imports of US$ 32.91 billion in May 2019. Non-oil and non-gold imports were US$ 64 billion in May 2020, down 33.74 per cent over the same period of last year.  Non-oil and non-gold imports were US$ 31.10 billion in April-May 2020-21, down by 42.61 per cent, over the same period of last year.