Exports at 87% of year-ago level, freight exceeds
India exported $26.33 billion worth of goods in July 2019. Exports in the current month are expected to recover to almost that level. “Imports are 72% of the corresponding period of July 2019. The trade deficit is falling,” said another official.
Non-oil exports have reached 95% of the previous year’s level while non-oil imports are almost 70% of the July 2019 mark. These are seen as indicators of the strength of the domestic economy.
India’s exports had contracted for the fourth consecutive month in June, falling 12.41% to $21.91 billion while imports nosedived 47.59% to $21.11.
Railway freight loading as of July 27 for the month was 3.13 million tonnes compared to 3.12 million tonnes for the corresponding period last year. The average speed of freight trains was 46.2 kmph, more than double of 22.5 kmph registered last year for the same date.
As per the Centre for Monitoring Indian Economy, employment rate was 38.41% for the week ended July 19, almost on a par with June 21 level of 38.42%
However, independent economists have said the economic recovery seen in June has weakened.
“While high-frequency indicators for Q2 broadly suggest a normalization, we see a rising risk that the sequential improvement inactivity may fade after the initial post-lockdown normalization,” Nomura said in a report on Monday.
Lockdown by many states has contributed to the decline in economic activity in July after a sharp recovery in June.
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