India witnessed its first monthly merchandise trade surplus since January 2002 in June, as export contracted by just 12.4% y-o-y to $21.91 billion, while imports collapsed by 47.6% to $21.11 billion, mirroring a Covid-induced domestic demand compression.
Exports of iron ore, chemicals and farm products, including rice, spices, oilseeds and oil meals, rose.India witnessed its first monthly merchandise trade surplus since January 2002 in June, as export contracted by just 12.4% y-o-y to $21.91 billion, while imports collapsed by 47.6% to $21.11 billion, mirroring a Covid-induced domestic demand compression. Exports of iron ore, chemicals and farm products, including rice, spices, oilseeds and oil meals, rose.
While a sustenance of the recovery in exports will be known only after 2-3 months, improved trade balance will mean India could widen a current account surplus in the June quarter from that of 0.1% of GDP in the March quarter.
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