Policymakers worry the knock-down effects of April's historically low exports may cut short outbound trade in FY21 as the March-June period is crucial in the export cycle for many sectors such as apparels and engineering goods. Data released by the Commerce and Industry Ministry shows, India’s exports dipped 60.28 per cent in April to $10.36 billion shrinking for a second straight month as the COVID -19-induced lockdown took its toll on trade with other countries.

The rate of fall in outbound trade was the most since at least April 1, 1995, as manufacturing units remained shut for the first 20 days owing to the nationwide curbs, and faced major logistics and supply-side hurdles later on. The country’s exports had declined by 34.57 per cent in March.

Readymade garments, the sector in which India’s export competitiveness has steadily fallen over the past financial year, managed to push out just $126.31 million in April, registering a 91 per cent fall.

Receipts from the volatile processed petroleum exports fell by 66 per cent in April to just $1.24 billion as global oil prices crashed amid a major slump in -oil and non-gold imports declined by 52.08 per cent.