The oil factor

The surplus should not be a cause for any celebration

For the first time in many years, India’s overall trade account, including both merchandise and services, has seen a surplus in each of the last two months. In comparison, the overall trade account in 2019-20 ran a deficit of $70 billion and the deficit in the year before was higher at $98 billion.

Of course, the surplus so far in the current year has been very small at about $0.42 billion in April and $3.98 billion in May. It is also riding heavily on a sharp fall in overall imports, particularly of petroleum products, and a decline in the pace