India Returns To Trade Deficit In July

In July, India posted a trade deficit of $4.83 billion in goods after reporting its first trade surplus in over 18 years in the previous month. Data from the Ministry of Commerce & Industry released on 14 August showed that India's exports in July were $23.64 billion, as compared to $26.33 billion in the same month last year, exhibiting a negative growth of (-) 10.21 percent.

In rupee terms, exports were Rs 1.77 lakh crore in July 2020, as against Rs. 1.81 lakh crore in July 2019, registering a negative growth of (-) 2.14 percent.

Official data showed that overall exports (merchandise and services combined) in the April to July 2020 period is estimated to be $billion, exhibiting a negative growth of (-)21.99 percent over the same period last year. Overall imports in the April to July 2020 period are estimated to be $127.76billion, exhibiting a negative growth of (-) 40.66 percent over the same period last year.

Major commodity categories which have recorded positive growth during the month when compared to a year ago were other cereals (204.99 percent), Rice (47.99 percent), Iron ore (39.61 percent), Oil seeds (32.61 percent), Oil meals (28.44 percent), meat, dairy & poultry products (22.14 percent), fruits & vegetables (21.01 percent), Drugs & pharmaceuticals (19.53 percent), coffee (14.27 percent), cereal preparations & miscellaneous processed items (12.92 percent), ceramic products & glassware (9.72 percent), engineering goods (8.46 percent), Cotton yarn/fabs./made-ups, handloom products etc. (7.44 percent), Jute mfg. including floor covering (6.77 percent), Plastic & Linoleum (3.72 percent) and Carpet (1.96 percent).

Major commodities which have recorded negative growth during July 2020 from a year ago were petroleum products (-51.54 percent), Gems & jewellery (-49.61 percent), Leather & leather products (-26.96 percent), Man-made yarn/fabs./made-ups etc. (-23.33 percent), RMG of all textiles (-22.09 percent), Cashew (-21.25 percent), Marine products (-20.14 percent), Tobacco (-19.49 percent), Electronic goods (-17.42 percent), Spices (-11.38 percent), Mica, Coal & other ores, minerals including processed minerals (-8.21 percent), Handicrafts excl. hand made carpet (-6.12 percent), Tea (-3.97 percent) and Organic & Inorganic Chemicals (-0.05 percent).