After years, the phase of trade surplus in the country created by 'these reasons'

The status of trade surplus in the country after 18 years

JULY 16 (WTN) - As you are aware that due to the Coronavirus infection epidemic, the economy of many countries, including India, was almost stagnant for a long time. As far as India is concerned, due to the lockdown, the economic activity of many sectors in India remained closed for almost 100 days. And due to this, not only the country suffered a huge loss of revenue, but also millions lost their jobs.

Here, the global economic institutions such as the IMF and the World Bank have also clearly stated that due to the Corona crisis, the whole world may face  a big recession like the economic recession of the 1930s. At the same time, the Corona crisis will also have the opposite effect on India's fast growing economy. But amidst the historical economic troubles of the Corona Crisis and all the apprehensions of the economic recession, the trade surplus has recorded into the business in India after 18 years.

Now, you must be wondering what is the trade surplus after all? So, for your information, let's know that the difference between import and export of any country is called the balance of trade. But when a country imports more than exports, it is called the trade deficit. At the same time, when a country reduces imports compared to exports, it is called the trade surplus.

Let's know that for the first time in 18 years, the trade surplus has come due to a large decline of 47.59 percent in the country's imports. But there has been an increase in the exports of oilseeds, coffee, rice, tobacco, spices, medicines, and chemicals. However, in four consecutive months, India's exports have declined in March, April, May, and June. As far as the month of June is concerned, the country's exports have fallen by 12.41 percent this month. In fact, the country's total exports have come down mainly due to the fall in the exports of petroleum products, textiles, engineering goods, and gems and jewelery.

Exports declined 12.41 percent to $ 21.91 billion in the month of June due to weak global demand as per the Corona crisis. But imports also declined by 47.59 percent to $ 21.11 billion in the month of June. For this reason, there was a trade surplus of about $ 0.79 billion in June. Explain that this is the first time in the last 18 years when the situation of the trade surplus has arisen in the country. Earlier, in January 2002, there was a trade surplus of $ 10 billion.

It can be said about the trade surplus that the exports from the country are witnessing an increase due to the government's measures to increase the exports. At the same time, after the lockdown, the country's economic activities are slowly improving. At the same time, a large number of workers are now returning to work, which is making industrial activities normal. And for this reason, the Indian industry is meeting the global demand, due to which the exports have increased in some sectors.

Due to declining imports and rising exports, economists estimate that the trade deficit in the first quarter of 2020-21 will be reduced to $ 10 to 12 billion from about $ 46 billion in the first quarter of 2019-20. At the same time, it is estimated that there will be a surplus of about 14 to 16 billion dollars on the current account front in the first quarter of 2020-21.

After 18 years, the trade surplus situation of the country's trade is encouraging. But during the last four months, imports have come down due to weak demand for the other products, including petrol-diesel. But at the same time, the exports from the country have also been recorded down during this period. Now, after the Corona crisis, the economic activity will be back on the track across the world, then it has to be seen how much export growth is increased by the Modi Government's export promotion policies. At the same time, how much does the Vocal for Local Policy affect imports? And because of all this, can the position of trade surplus remain or not?