InvestorQ : Why had the export numbers for the month of March 2020 fallen so sharply and what does that mean for Indian economy?
Chandralekha Desai made post

Why had the export numbers for the month of March 2020 fallen so sharply and what does that mean for Indian economy?

Answer
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Mitali Bhutta answered.
6 months ago


The sharp contraction in exports and imports for the month of March was hardly surprising and that is largely in tune with what is happening in the world over. Trade data for March 2020 saw a sharp contraction in export and import volumes and trade officials in India admit it could only get worse in April. Exports contracted by 34.5% on a YOY basis to $21.4 billion. This is the worst contract in 25 years with 1995 seeing the last such major contraction in exports. Imports have also fallen by over 30% with the trade deficit remaining almost static at $9.75 billion. Nearly 50% of the export orders had been cancelled during the month using the Force Majeure clause leading to the huge contraction. The Federation of Indian Exports Organization (FIEO) has already warned that the trade contraction would kill nearly 1.50 crore jobs in India; largely SME jobs. That is what the government is trying to address through the stimulus but it may take a global recovery for exports to pick up materially.