According to the economic survey, business with America is in favour of India.
Economic Survey 2020-21: In 2020, the worldwide business was severely affected due to the Corona epidemic. Talking about India, during the first quarter of the current financial year 2020-21, there was a sharp decline in India’s exports and imports. The decline in imports was more than exports, leading to a trade deficit of just $ 980 million in the first quarter of 2020-21 compared to $ 4920 million in the first quarter of the previous fiscal year 2019-20. Apart from this, India had a trade surplus in a month after 18 years. India’s exports were higher than imports in June 2020. The economy opened up from June and business grew. In April-December 2020, the trade deficit was $ 5750 million, while in April-December 2019 last year it was $ 12590 million.
These items are traded in favor of India
In the current financial year 2020-21, in April-November 2020, there was a trade surplus of India in the trade of some goods, that is, the export business was more than the import. For example, there was a business surplus in drug formulations, biologics, marine products, gold and other precious jewelery, iron and steel, rice and petroleum. According to the report of the Economic Survey, the imports of iron and steel were higher in April-November 2019-20 while the exports were higher in April-November 2020-21.
Reduction in trade balance on petroleum-crude
Similarly, India’s trade balance was not in favor of products like petroleum-crude, gold, telecom instruments, electronic components, vegetable oils, computer hardware, plastic raw materials, aircraft. However, according to the report of the Economic Survey, the trade balance in petroleum-crude decreased in April-November 2020-21. The trade balance in April-November 2020-21 was (-) 3120 million dollars while in April-November 2019-20 this figure was 6800 million dollars.
Business with America is in India’s favour
Talking about India’s trade balance with major countries in April-November 2020-21, the best trade balance was with America compared to April-November 2019. After this, India’s best business was with Bangladesh and Nepal, in which the trade balance was in India’s favour. The biggest trade deficit during this period was with China followed by Iraq and Saudi Arabia.
WTO estimated big shock
The World Trade Organization (WTO) estimated in April 2020 that global trade could fall by 13–22 per cent in 2020. However, economic activity gradually picked up when the lockdown was relaxed. Subsequently, the WTO revised its estimate that global trade could decline by 9.2 percent in 2020 and by 7.2 percent in 2021. The global economy is still not recovering from the Corona epidemic. However, in India, the economy has been supported by three consecutive quarters of surplus current account balance, resumption of capital inflows and increase in FDI inflows and an increase in foreign exchange reserves.