The import goods scenario has taken a bit hit with a fall by 46.7% and reached USD 88.9 billion.
On the other hand, the goods export business has fallen at a slower rate from 30.3% to USD 74.9 billion.
The question arises – why have good exports fallen at a slower rate compared to imports?
The reason behind the decline in imports by 46.7%
One of the main reasons for the decline is the decrease in oil and oil product imports, which has come down by a good 55.9% to USD 19.6 billion.
The two reasons behind this decrease are the fall in the oil process, wherein the Indian crude oil price has fallen from USD 66.8 last year (April-July, 2019) to USD 33.6 per barrel in 2020.
One of the significant reasons for the oil price fall is the country’s lack of transportation and mobility due to the coronavirus pandemic. The lack of consumption of petroleum products has come down by 22.5% in the April-July period.
Other reasons behind the crash in imports
Due to the pandemic, incomes have been substantially hit and brought down consumption to an all-time low in oil, gold, and silver imports. Also, the demand rate in other countries has affected India’s demand for goods, leading to a crash by 30.3% and to an amount of USD 74.9 billion.
What has led to a fall in imports faster than exports?
The export rate decline has been slow because some of India’s trade partners went through the Covid-19 pandemic way before India did. With their economies slowly recovering, there has also been a rise in exports to countries that could control the pandemic.
India has been actively trading in terms of exports with China, Singapore, Malaysia, and Vietnam, as they have successfully flattened the Covid-19 curve.
India’s top 5 trading countries
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