InvestorQ : How is the trade numbers for December 2020 looking? Is there any improvement in the export numbers for the month?
Dawn Cherian made post

How is the trade numbers for December 2020 looking? Is there any improvement in the export numbers for the month?

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Mitali Bhutta answered.
2 months ago
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While the actual trade numbers pertaining to exports and imports of merchandise goods is normally disclosed around the middle of the month by the Ministry of Commerce, in recent months, the government has made it a point to disclose the broad details of the previous month in the first two days of the next month. Here are the highlights.

· According to government estimates, India’s merchandise trade deficit for Dec-20 had touched a level of $15.71 billion.

· This figure is nearly 26% higher on a YOY basis and substantially higher than the average median trade deficit in the last 9 months.

· One reason for the trade deficit widening was tepid exports but more importantly, it was about a sharp spike in imports of merchandise goods.

· Exports for the month of Dec-20 stood at $26.89 billion while the merchandise imports for the month were at $42.60 billion, resulting in a trade deficit of $15,71 billion.

· On the exports front, the products that suffered the most were leather products, petroleum products and marine products due to slow global demand.

· Based on early numbers, there was a spike in oil imports in Dec-20. This was triggered by the GDP recovery as well as by higher crude prices, which had scaled $53/bbl.

· Interestingly, even gold imports spiked in Dec-20; largely due to the festival season. This is a macro concern as it is an unproductive asset and uses up precious foreign exchange.

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