The lower imports in petroleum and gold products as well as marginal increase of 2.44% in exports has significantly reduced the trade deficit to $9.6 billion, as per the data released by the Ministry of commerce.
The data also revealed that, India’s exports surged to $26.67 billion in February from $26.03% in the corresponding month a year ago mainly due to higher inward shipments in sectors such as pharmaceutical, engineering and electronics.
While imports plunged to $36.26 billion in February, taking a dip of 5.4% and narrowed the trade deficit to 9.6 billion. This compared to the trade deficit of February 2018-$12.3 billion and January 2019-$14.73 billion is significantly lower.
As per the trade experts, the reason behind such sharp decline in imports is lower owing inward shipment of petroleum products and gold.
However, in the 11 month period (April-January) the trade deficit has widened to $165.52 billion compared to $148.55 billion compared to trade deficit for the same deficit a year ago.
while during the April-February period of the fiscal 2018-19 exports grew 8.85% to $298.47 billion, while imports also surged by 9.75% to $464 billion.
Non-petroleum and non-gems and jewellery exports in February 2019 was at $19.87 billion, compared to $18.90 billion . Non-petroleum and non-gems and jewellery exports in April-February 2018-19 were $217.43 billion, as against $201.95 billion in the comparative period last fiscal.
Commenting on the positive trend, President of exporters’ body FIEO Ganesh Kumar Gupta said- exporters have managed to do well despite increasing anti-globalization sentiment, tough global scenario for trade and constrains on the domestic front.