Table of Contents
The Context
- India posted its first trade surplus in nearly two decades due to Covid-19-led drop in demand for crude oil, gold and other merchandise goods.
- The last time India had a trade surplus was in 2002.
Balance of Trade- Trade Deficit
MERCHANDISE TRADE- EXPORTS (including re-exports)
Imports
what does it indicate?
- This would provide some support to theIndian rupee.
- On the other hand, declining imports, an indicator of poor domestic demand.
Future scenarios
- Regional lockdowns in some Indian states, along with an uncertain employment scenario,
- Will keep consumption-related imports subdued.
- India’s current account balance also recorded a marginal surplus at 0.1% of the gross domestic product (GDP).
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