India posts first trade surplus in 18 years.
                     India posts first trade surplus in 
18 years
INTRODUCTION
• India posted a trade surplus of $790 million in June.
•  This is the first in over 18 years, with economic slowdown due to 
covid 19 pandemic.
Source: Business Standard
SLOWDOWN OF EXPORT
• As per the data released by the government a slowdown was seen 
in case of imports and exports.
• Exports fell 12.41 per cent to $21.91 billion.
Source: Business Standard
SLOWDOWN OF IMPORT
• Imports of crude oil, electronic items, gold jewellery and other 
products fell sharply during the three months lockdown.
• Merchandise imports contracted 47.59% in June to $21.11 billion.
Source: www.astaspice.org/
SECTORS WITH GROWTH OF 
IMPORT
• Imports of only vegetable oils (8.5%), pulses (0.1%), sulphur and 
unroasted iron pyrites (24.3%), and pharmaceutical products (0.3%) 
registered a growth. 
Source: Marketing Derby
ECONOMY
• Economy is projected to contract by up to 5% this financial year, 
beginning April.
• Covid-19 lockdown has hit economic activities and consumer 
demand.
Source: Times of India
IMPACT OF LOCKDOWN
• Due to lockdown situation, import restrictions and slowdown in the 
domestic economy have contributed to the fall in imports.
• Pushing for import substitutions has resisted industry pressure to 
sign a free trade agreement with the European Union.
Source: Hindustan Times
TRADE SURPLUS
• The reduction in import has resulted in leading to a marginal trade 
surplus.
• The increase in marginal trade surplus is a good news for the 
nation.
Source: Reuters
CRUDE OIL AND GOLD
• Crude oil imports reduced 55.29% year-on-year to $4.93 billion due 
to a tumble in global commodity prices as well as local demand. 
• Gold imports were reduced by more than 77% to $608.7 million.
Source: The Economic Times
COVID 19 PANDEMIC
• India went into lockdown in late March to prevent the spread of the 
novel corona virus.
• This forced manufacturers to close factories and fire millions of 
contract workers.
Source: Zawya
HIGHLIGHTS
• During June, merchandise exports contracted 12.4% while imports 
dipped 47.6%, leading to a trade surplus of $790 million
• India’s current account balance recorded a surprise marginal 
surplus at 0.1% of GDP in March quarter of FY20
Source: VNFIBER