Exports plummet 34.57% in March

· Exports in 2019-20 decline 4.78 %, imports fall 9.12%, trade deficit shrinks

· Lockdown of Transport Hits Movements from and to Ports

· Engineering Goods Exports Worst Hit

· Capital Goods, Steel Imports Totter

· Pile Ups in Ports as Local Transport and Rail Movements Come to Grinding Halt

(Ministry claims that Port Warehouses are clogged as trade delays clearance due to demand bottlenecks)

India’s exports of goods in March 2020 crashed by 34.57 per cent to $21.41 billion (year-on-year) as the spread of Covid-19 across countries disrupted production and supply chains globally. This pulled down overall export figures for financial year 2019-20 by 4.78 per cent to $314.31 billion.

Imports in March 2020 were also severely hit falling 28.72 per cent to $31.16 billion while the trade deficit narrowed to $9.76 billion as against the deficit of $11 billion in March 2019. Overall trade deficit in 2019-20 was lower at $152.88 billion compared to the trade gap in 2018-19 at $184 billion as imports during the fiscal declined 9.12 per cent to $467.19 billion, as per figures released by the Commerce and Industry Ministry on Wednesday.

Exporters believe that the first quarter of 2020-21 will see a similar downward trend and nominal growth may start only from the second quarter depending on the conditions evolving in the international market.

“April would be worse (than March) as international trade, except in medicine and essential supplies, has come to a near halt. Exporters are facing a question of survival,” said Ravi Sehgal from Engineering Exports Promotion Council of India.

Fall in exports in March 2020 was spread across sectors, including all top performers, such as petroleum products, readymade garments, engineering goods, gems and jewellery, leather products, coal and other minerals, plastic and linoleum, carpets and handicrafts.

Export of agricultural commodities such as oil meals, meat and poultry, dairy products, tea and other cereals also posted a steep decline during the month.

Sectors which posted a decline in imports in March 2020 include gold, petroleum products, pearls, precious and semi-precious stones (-53.46%), machinery, electronic goods and coal & coke.

India’s goods exports were sluggish even before the Covid-19 crisis broke out due to overall slowdown in the global economy and world trade. Exports in April-February 2019-20 period had declined 1.5 per cent to $292.91 billion although there was a marginal growth in February 2020. In 2018-19, exports touched a high of $330 billion.

Statement of EEPC India Chairman Ravi Sehgal on Fall in Exports

A huge drop of over 34 per cent in March merchandise exports is no surprise with major economies of the world in a state of lockdown. April would be worse as international trade excepting medicine and essential supplies has come to a near halt. Exporters are facing a question of survival.

[Click here for MoC&I Press Release dated 15^th April 2020]

[Click here for Quick Estimates for Selected Major Commodities for March 2020]