InvestorQ : How was the trade data on exports and imports for the month of September 2020?
ishika Banerjee made post

How was the trade data on exports and imports for the month of September 2020?

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1 month ago
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The trade data for September 2020 was announced by the Ministry of Commerce on 15 October. There was some respite for the Indian economy on the trade data front with the trade deficit once again at palatable levels.

For the month of Sep-20, the Ministry of Commerce reported Indian exports had grown 6% to $27.6 billion on the back of sectors like engineering and pharmaceuticals. However, imports had contracted by 19.6% to $30.3 billion during this period on the back of oil.

The outcome of this was that the trade deficit had sharply narrowed to just $2.7 billion, almost a fifth of the number over the last one year. The imports declining faster than exports led to favourable trade deficit outcome.

It may be recollected that the trade deficit had turned into a very small surplus a few months ago but that could not be sustained. This has been largely contributed by crude oil prices staying below $40/bbl in the Brent Crude market.

Even though there was a trade deficit on the merchandise trade account, it was more than compensated by the surplus on the services trade account. For first half of fiscal 2020 in the Apr-Sep period, India reported a trade surplus of $17 billion on an overall basis.

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