India’s exports increase 2.44% in February; trade deficit narrows to $9.60 billion

India’s merchandise exports continued their growth momentum for fifth straight month. Exports grew by 2.44% in the month of February 2019, over the same month of last year, on account of growth in sectors such as pharmaceuticals, textiles, handloom, engineering goods and chemicals. However, imports fell 5.41% in the reporting month as compared to corresponding month of 2018, mainly on account of sharp decline in inward shipments of gold and petroleum products. As a result, trade deficit, gap between imports and exports, narrowed to $9.60 billion in February 2019, as against the deficit of $12.30 billion in February 2018. Though, the trade deficit has widened to $165.52 billion during the 11 months of the current fiscal from $148.55 billion compared to the year-ago period.

As per the data released by the Commerce Ministry, merchandise exports grew by 2.44% to $26.67 billion in February 2019, as compared to $26.03 billion in the same month a year ago. In Rupee terms, exports were higher by 13.34% to Rs 1,89,931.49 crore in February 2019, as compared to Rs 1,67,583.64  crore in February 2018. Cumulative value of exports for the period April-February 2018-19 was $298.47 billion as against $274.21 billion during the period April-February 2017-18, registering a positive growth of 8.85%. In Rupee terms, it was up by 18.26% to Rs 20,88,290.32 crore from Rs 17,65,895.27 crore.

Non-petroleum and Non Gems and Jewellery exports in February 2019 were $19.87 billion, as compared to $18.90 billion in February 2018, exhibiting a positive growth of 5.14%. Non-petroleum and Non Gems and Jewellery exports in April-February 2018-19 were $217.43 billion, as compared to $201.95 billion for the corresponding period in 2017-18, an increase of 7.66%.

On the other hand, imports during February 2019 declined by 5.41% to $36.26 billion as compared to imports of  $38.34 billion in February 2018, while in rupee terms it was up by 4.66% to Rs 2,58,271.75 crore from Rs 2,46,779.79 crore in February 2018. Cumulative value of imports for the period April-February 2018-19 was $464.00 billion, as against $422.76 billion during the period April-February 2017-18, registering a positive growth of 9.75%. In rupee terms, it was Rs 32,46,190.43 crore, up by 19.23% from Rs27,22,592.19 crore in the same period last year.

Oil imports in February 2019 were $9.38 billion, which was 8.05% lower, compared to $10.20 billion in February 2018. Oil imports in April-February 2018-19 were $128.72 billion which was 31.98% higher compared to $97.53 billion, over the same period last year. Non-oil imports in February 2019 were estimated at $26.89 billion which was 4.45% lower, compared to $28.14 billion in February 2018. However, non-oil imports in April-February 2018-19 were $335.28 billion which was 3.09% higher, compared to $325.23 billion in April-February 2017-18. Non-Oil and Non-Gold imports were $24.30 billion in February 2019, up 3.72% over the same period of last year. Non-Oil and Non-Gold imports were $305.73 billion in April-February 2018-19, up 3.97%, over the same period of last year.