The ongoing Covid-19 pandemic😷 has undoubtedly, given the Indian economy, the severest blow😧 till date.
It has also brought a major downfall⤵️ in the country’s exports and imports.
Between April and July🗓️, India’s goods imports fell by 46% to $89 billion (Rs. 6.25 lakh crores).
On the other hand, the country’s goods exports🛳️ dropped to $75 billion (Rs. 5.25 lakh crores) during the same period.
The biggest factor behind the decline in India’s imports is the drop in oil🛢️ and oil products imports.
They plunged by a whopping 56% to $19 billion.
A 50% fall in international crude prices💰 since 2019 and a 22% fall in the consumption🚗 of petroleum products due to the lack of mobility during the Covid lockdown were the reasons behind that.
What else played its part?
As the Covid pandemic brought down people’s incomes😩, it led to a fall in consumption.
This got reflected in a 39% decrease in imports of goods ☝️other than oil, gold and silver.
They stood at $66 billion during the aforesaid period.
About the exports woes
A demand crash in other covid struck economies resulted in a 30% decline in India’s exports.
They tallied to $75 billion.
Notably, exports crashed at a lower pace than imports.
The reason behind this is that some of India’s trading partners🤝 such as China, Singapore, Malaysia and Vietnam experienced the peak of covid pandemic much earlier than it.
Since they managed to flatten that curve📉, their economies are gradually getting back on track🙂.
In contrast, India’s exports to countries like the US and Brazil are lower compared to last year as these nations are witnessing a constant rise😨 in covid cases.