India's exports decline 36.47% in May, trade deficit narrows to USD 3.15 bn amid COVID-19 crisis

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New Delhi: India's exports declined 36.47 per cent in May to USD 19.05 billion, mainly on account of the drop in shipments by key sectors such as petroleum, textiles, engineering, gems, and jewellery, according to the data released by the Commerce and Industry Ministry on Monday (June 15).

Imports also plunged 51 per cent to USD 22.2 billion in May, leaving a trade deficit of USD 3.15 billion, compared to USD 15.36 billion in the same month previous year, according to the government statement. 

During April-May 2020, the exports fell 47.54 per cent to USD 29.41 billion, while imports shrank by 5.67 per cent to USD 39.32 billion. Notably, the trade deficit stood at USD 9.91 billion during the two months of the current fiscal.

Oil imports stood at USD 3.49 billion in May - 71.98 per cent lower compared to USD 12.44 billion in the same month last year.

Gold imports in May also dipped 98.4 per cent to USD 76.31 million. 

According to the government statement, India’s overall exports (Merchandise and Services combined) in April-May 2020-21 are estimated to be USD 61.57billion, exhibiting a negative growth of (-) 33.66 per cent over the same period last year. Overall imports in April-May 2020-21 are estimated to be USD 57.19 billion, exhibiting a negative growth of (-) 48.31per cent over the same period last year.

The latest data for the services sector released by RBI is for April 2020. The data for May 2020 is an estimation, which will be revised based on RBI’s subsequent release.

MERCHANDISE TRADE

EXPORTS (including re-exports)

1. Exports in May 2020 were USD19.05billion, as compared to USD29.99billion in May 2019, exhibiting a negative growth of (-)36.47 per cent. In Rupee terms, exports were Rs. 1,44,166.01crore in May 2020, as compared to Rs 2,09,280.62crore in May2019, registering a negative growth of (-) 31.11per cent.

2. Except for Iron ore, Drugs & pharmaceuticals, Spices and Rice which registered a growth of 103.04%, 17.32%,10.55% and 7.64% respectively, all other commodity/commodity groups have registered negative growth in May 2020 vis-a-vis May 2019.

3. Major commodity groups which have recorded negative growth during May 2020 vis-à-vis May 2019 are Leather & leather products (-75.07%), Handicrafts excl. hand made carpet(-72.77%), Gems & jewellery (-68.83%), Petroleum products (-68.46%), RMG of all Textiles (-66.19%), Jute mfg. including floor covering (-65.7%), Man-made yarn/fabs./made-ups etc. (-58.63%), Meat, dairy & poultry products (-56.38%), Other cereals (-49.53%), Cotton yarn/fabs./made-ups, handloom products etc. (-47.47%), Carpet (-46.18%), Electronic goods (-45.35%), Mica, Coal & other ores, minerals including processed minerals (-35.57%), Ceramic products & glassware (-33.48%), Cashew (-32.86%), Tea (-26.94%), Engineering goods (-24.25%), Oil Meals (-22.76%), Oil seeds (-18.41%), Marine products (-18.14%), Cereal preparations & miscellaneous processed items (-17.44%), Tobacco (-13.75%), Organic & inorganic chemicals (-12.71%), Plastic & Linoleum (-6.55%), Coffee (-5.71%) and Fruits & vegetables (-1.31%).

4. The cumulative value of exports for the period April-May 2020-21 was USD 29.41 billion (Rs.2,23,117.42crore) as against USD56.07billion (Rs.3,90,301.96crore) during the period April-May 2019-20, registering a negative growth of (-)47.54per cent in Dollar terms (negative growth of (-)42.83per cent in Rupee terms).

5. Non-petroleum and Non-Gems and Jewellery exports in May 2020 were USD16.36billion, as compared to USD21.42billion in May 2019, exhibiting a negative growth of (-) 23.61per cent. Non-petroleum and Non-Gems and Jewellery exports in April-May 2020-21 were USD25.44billion, as compared to USD40.96billion for the corresponding period in 2019-20, a decrease of (-) 37.89 per cent.

IMPORTS

1. Imports in May2020 were USD22.20billion (Rs 1,67,977.68 crore), which was 51.05per cent lower in Dollar terms and 46.92per cent lower in Rupee terms over imports of USD45.35billion (Rs3,16,448.93 crore) in May2019. The cumulative value of imports for the period April-May 2020-21 was USD39.32 billion (Rs.2,98,502.76crore), as against USD86.75billion (Rs.6,03,881.86crore) during the period April-May 2019-20, registering a negative growth of (-)54.67per cent in Dollar terms (negative growth of (-)50.57per cent in Rupee terms).

2. Major commodity groups of import showing negative growth in May 2020 over the corresponding month of last year are:

CRUDE OIL AND NON-OIL IMPORTS:

1. Oil imports in May 2020 were USD3.49 billion (Rs. 26,380.50crore), which was 71.98percentlower in Dollar terms (69.62 percent lower in Rupee terms), compared to USD12.44billion (Rs. 86,822.36crore) in May 2019. Oil imports in April-May 2020-21 were USD8.15 billion (Rs. 61,917.72crore) which was 65.79per cent lower in Dollar terms (62.66percent lower in Rupee terms) compared to USD23.82billion (Rs. 1,65,811.82crore), over the same period last year.

2. In this connection, it is mentioned that the global Brent price ($/bbl) has decreased by 56.02% in May 2020 vis-à-vis May 2019 as per data available from World Bank.

3. Non-oil imports in May2020 were estimated at USD18.71 billion (Rs. 1,41,597.18crore) which was 43.13per cent lower in Dollar terms (38.34percent lower in Rupee terms), compared to USD32.91billion (Rs. 2,29,626.57crore) in May 2019. Non-oil imports in April-May 2020-21 were USD31.17billion (Rs. 2,36,585.04crore) which was 50.46per cent lower in Dollar terms (45.99percent lower in Rupee terms), compared to USD62.93billion (Rs. 4,38,070.04crore) in April-May2019-20.

4. Non-Oil and non-Gold imports wereUSD64billion in May 2020, recording a negative growth of (-)33.74per cent, as compared to Non-Oil and Non-Gold imports of USD 28.13billion in May 2019. Non-Oil and Non-Gold imports wereUSD31.10billion in April-May 2020-21, recording a negative growth of (-)42.61per cent, as compared to Non-Oil and Non-Gold imports USD 54.18billion in April-May 2019-20.

TRADE IN SERVICES

EXPORTS (Receipts)

As per the latest press release by RBI dated 15th June 2020, exports in April 2020 were USD 16.45 billion (Rs. 125,409.04 crore) registering a negative growth of (-) 8.92 per cent in dollar terms, vis-à-vis April 2019. The estimated value of services export for May 2020 is USD 15.70 billion.

IMPORTS (Payments)

As per the latest press release by RBI dated 15th June 2020, imports in April 2020 were USD 9.30 billion (Rs 70,907.57crore) registering a negative growth of (-)18.43 per cent in dollar terms, vis-à-vis April 2019. The estimated value of service import for May 2020 is USD 8.57 billion.

TRADE BALANCE

MERCHANDISE: The trade deficit for May 2020 was estimated at USD 3.15 billion as against the deficit of USD 15.36 billion in May 2019.

SERVICES: As per RBI’s Press Release dated 15th June 2020, the trade balance in Services (i.e. Net Services export) for April 2020 is estimated at USD 7.15 billion.

OVERALL TRADE BALANCE: Taking merchandise and services together, the overall trade surplus for April-May 2020-21 is estimated at USD4.37 billion as compared to the deficit of USD17.84 billion in April-May 2019-20.