Trade deficit for the month of April worsened by 42% M/M. Exports declined by 47% M/M and imports declined by 7% M/M in April’20. On yearly basis, exports registered a decline of 54% from $2,089mn in Apr’19 to $957mn in Apr’20. Imports shrinked by 34% Y/Y from $4,714mn in Apr’19 to $3,088mn in Apr’20.
Worsening of trade deficit can be attributed to fall in exports outweighing the fall in imports. We believe that due to global lockdown throughout April, export were disturbed severely, specially textile exports. As far as the month of May is concerned we expect recovery in exports on account of revival of orders in textile sector and exports sector in general. Decline in import seems to have bottomed out and hence further decline in May might not be significant.