Exports soar by 25% to $34.57 billion in February; trade deficit widens to $20.88 billion – Times of India

NEW DELHI: India’s exports rose by 25.1 per cent to $34.57 billion in February, fuelled by greater shipments of engineering, petroleum and chemical substances items even because the trade deficit widened to $20.88 billion, in line with the commerce ministry knowledge launched on Monday.
Imports in the course of the month too jumped 36 per cent to $55.45 billion, with inbound shipments of petroleum and crude oil surging 69 per cent to $15.28 billion.
Commerce deficit — the distinction between imports and exports — stood at $13.12 billion in February 2021.
“Merchandise exports for the interval April-February 2021-22 was $374.81 billion as in opposition to $256.55 billion in the course of the interval April-February 2020-21, registering a optimistic progress of 46.09 per cent,” the ministry stated.
Imports in the course of the 11-month interval rose 59.33 per cent to $550.56 billion. Commerce deficit throughout this era widened to $175.75 billion as in opposition to $88.99 billion throughout April-February 2020-21.
In response to the information, gold imports in February dipped by 9.65 per cent to $4.8 billion. Imports of digital items rose about 29.53 per cent to $6.27 billion.
Exports of engineering items, petroleum and chemical substances in February elevated by 32 per cent, 88.14 per cent and 25.38 per cent to $9.32 billion, $4.64 billion and $2.4 billion, respectively.
Pharmaceutical exports, nonetheless, slipped by 1.78 per cent to $1.96 billion in February.
Commenting on the figures, ICRA chief economist Aditi Nayar stated that whereas greater commodity costs will inflame imports in March 2022, the quantity of oil imports will play a key position in figuring out the scale of the commerce deficit.
“We anticipate the commerce deficit to stay greater than $20 billion within the ongoing month,” she stated, including the rise in merchandise exports in February 2022 relative to the year-ago degree was mainly propelled by engineering items and petroleum merchandise.
Benefitting from greater commodity costs and bouts of world optimism, India’s merchandise exports are set to print round $410 billion on this fiscal, Nayar stated.
“With the sharp rise within the commerce deficit, we anticipate the present account deficit to have crossed 3 per cent in Q3 FY’2022, for the primary time because the June 2013 quarter, earlier than receding considerably within the ongoing quarter.
“For FY’2023, we venture the present account deficit at 2.8 per cent of GDP if the crude oil worth averages at $115/barrel, the probability of which can crucially depend upon the period of the geopolitical tensions,” she added.

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