(Bloomberg) -- India's trade plunged in April as a nationwide lockdown disrupted supply chains and brought domestic demand to a halt in Asia's third-largest economy.
Exports contracted 60% from a year ago, while imports declined 58.7%, according to the data released by the Commerce Ministry on Friday. That resulted in a trade deficit of $6.76 billion in April, narrower than the $9.8 billion recorded in March, and compared with a median estimate of $6.1 billion in a Bloomberg survey of 14 economists.
Key Insights
- The slump in exports followed a 35% plunge in March as more countries began imposing lockdowns to contain the coronavirus pandemic, putting a brake on global demand. Imports were already on a steady decline since last year as India's economy slowed
- India has begun gradually reopening its economy but the damage to growth and jobs is already severe. Economists in a Bloomberg survey predict the first contraction in GDP in more than four decades
- Prime Minister Narendra Modi this week announced a $265 billion support package to cushion the economy. His speech emphasized the need for self-reliance, signaling a more protectionist stance as he asked people to embrace locally-made goods
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- Oil imports fell 59% in April from a year earlier to $4.66 billion
- To read the full statement on trade numbers, click here
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