Falling demand for crude oil and gold push imports down.
India recorded a trade surplus of $790 million in June 2020. A trade surplus occurs when a country’s exports are more than its imports.
In this case, tumbling demand for crude oil, gold, and other industrial products brought in the surplus. Crude oil imports declined by about 55% in June and gold imports fell by a whopping 77%. On the export side, oil seed exports have been witnessing a healthy growth.
India last recorded such a trade surplus in January 2002 at $10 million.
Since 2011-12, India’s exports have been valued nearly $300 billion. It grew to $303 billion in 2017-18 and the further to about $330 billion in 2019-20 before shrinking in the first quarter (April, May June) of the current financial year (April 2020- March 2021).