THE IMPACT OF LOCKDOWN ON THE IMPORT EXPORT BUSINESS OF INDIA



The import-export business of India has fallen at a record-breaking low in April due to the sealing of the borders by many countries to reduce the spread of the pandemic COVID-19. According to the recent data released by the commerce ministry of India, the exports of goods and services have fallen to 60.3%, whereas, the imports have plunged to 58.7%. As a result, the trading business in India has been seeing the deficiency of $6.8 billion. Due to the countrywide lockdown from March 23rd in India, the export business in India had dropped 28.7% in March which is followed sharply in April with even worsening the situation, resulting in the falling of the exports by 34.6% drop.

It’s been two long months since the lockdown has started in India and it hit the trading business too badly in India and due to the pandemic coronavirus, the economy of India has also been declining rapidly. The government of India has been relaxing down the restrictions of the lockdown, allowing some of the essential movements, depending on the type of zone in the country. However, according to Aditi Nayar, the vice-president of Icra, despite some relaxations provided by the government in the month of May, the import-export business of India would not likely to witness any improvement in May as well. However, the first quarter of the financial year 2021, would not face any account surplus because of the pause in the trading business of India.

There are major 30 products in India, which is exported internationally and out of that 30 products, only iron with 17.5% and pharmaceuticals with 0.25% have seen a growth rate in April. When it comes to imported products all of them seen the declining rate during the previous month. The contraction in the imports of non-oil products such as precious stones and gold, machinery, electronic goods, and coal was expected. And if we talk about the export of non-oil products then they have also seen a sharp decline of 59.3% with the products including textiles, jewelry and gems, and engineering goods. And considering the severe condition of the pandemic in the world, it is going to cause a lot of job losses across the world.

The nationwide lockdown in India is causing a lot of difficulties for the migrant workers in the country. According to the latest data from the Centre for Monitoring Indian Economy, the unemployment rate in India has climbed to 27.1% in the first week of May. According to a survey in India, about 121.5 million people in the country have reported the job losses in the month of April. Due to the restrictions of the government in the countries such as India, Pakistan and Bangladesh, the GDP of South Asia will be further reduced by $142 billion to $218 billion, about 3.9% to 6%, in the fiscal year of 2021, according to the latest report by The Asian Development Bank.

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