Exports down for sixth straight month falling nearly 13% in August

Source: The Economic Times, Sept 15, 2020

India’s exports fell for the sixth straight month owing to subdued economic activity resulting from lockdowns imposed to curb the rising Covid-19 cases.

For the month of August, the exports fell 12.7% compared to the same period last year while imports were down 26% resulting in narrowing of trade deficit to $6.77 billion compared to $13.86 billion a year ago.

August exports stood at $22.70 billion while imports were $29.47 billion.

The dip in exports was on account of decline in the shipments of petroleum, leather, engineering goods and gems and jewellery items, according to the government data.

In June, India recorded a rare trade surplus as both the imports and exports crashed as a result of the lockdown.

The exports are expected to pick up pace with the further unlocking of the economy and as the economic activity gathers steam. The trade deficit could further start rising as the non-gold and non-oil imports rise with the resumption of economic activity.

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