India's trade deficit recorded its steepest fall since September 2013 in the month of February to $8.13 billion from $14.12 billion in the year ago period and $9.92 in January, led by sharp decline in imports, especially oil and non-oil imports. Signaling that government's efforts at containing deficit had started reaping benefits, country’s import slid by a steep 17% on Year-on-Year (Y-o-Y) basis. While oil imports were down to $13.7 billion from $14.13 billion in February 2013, non-oil imports too showed a decline of 24.5% to $20.12 billion from $26.65 billion (Y-o-Y) basis.
However, in a jolt to the economy, exports declined once again after a span of seven months. Exports came down by 3.67% at $25.68 billion in February compared to $26.66 billion in the same month last year, thereby casting doubts over chances of achieving export target of $325 billion for the present fiscal.
According to data released by the ministry of commerce and industry, cumulative value of exports for the period April-February 2013 -14 grew by 4.79% at $282.78 billion as against $269.86 billion. On the flip side, cumulatively imports during that period slid by 8.65% at $449.79 billion as against $410.86 billion in the same period last year. Consequently, trade deficit for Apr-Feb period narrowed down to $128.08 billion from $179.93 billion (Y-o-Y), thereby making government's current account deficit target of sub $50 billion by March 2014 more achievable.