India’s trade deficit for February 2018 was estimated at $11,979.21 million, 25.8 per cent higher than the $9,521.73-million deficit reported during February 2017, according data released by the Ministry of Commerce and Industry.
Exports from the country rose 4.48 per cent in dollar terms during February this year compared to the same month of the last fiscal. But, in rupee terms, export growth was flat with a mere 0.27 per cent rise, reflecting a dip in value of the Indian currency.
The growth is on the back of higher exports of petroleum products, organic and inorganic chemicals, drugs and pharmaceuticals, rice and electronic goods.
Exports during February 2018 stood at $25,834.36 million compared to $24,726.71 million during February 2017. However, in rupee terms, exports were valued at ₹1,66,305.72 crore, compared to ₹1,65,855.64 crore during February 2017.
Imports rose during the month under consideration and were 10.41 per cent higher (in dollar terms).
There was an increase in imports of petroleum, crude & products, electronic goods, machinery, electrical & non-electrical, pearls, precious & semi-precious stones and coal, coke & briquettes among others.
Imports during February 2018 were pegged at $37,813.57 million, compared to $34,248.44 million in February 2017.
Distress signs
Ringing the alarm bells at the increasing deficit and weakened Indian currency, EEPC India said that the decline of close to 2 per cent in dollar terms and near 6 per cent in rupee terms in engineering exports even as the pace of overall exports has slowed down in February 2018 is distressing.
EEPC India Chairman Ravi Sehgal said: “It is even more disconcerting to see Indian exports faltering when the global economy is on an uptick. We may find the going tougher when the trade war like situation surfaces.”
India’s crude oil import bill during February 2018 stood at $10,194.33 million, 32.05 per cent higher than the import bill of February 2017 on the back of a recovery in crude prices.
An official statement said global Brent crude oil prices have increased 17.90 per cent in February 2018 compared to February 2017 according to World Bank commodity price data.