India’s trade deficit widened marginally in February as the nation’s import bill rose amid strong domestic demand and rising crude prices.
The gap between exports and imports stood at $18.71 billion in February, Trade Ministry data showed Friday. The print is in line with the $18.6 billion deficit forecast by economists in a Bloomberg survey.
The imports grew 12.2% from a year earlier to $60.11 billion in February, while exports rose 11.9% to $41.40 billion during the month. The inbound shipments were $54.41 billion in January, while outbound shipments were at $36.92 billion.
Domestic demand has stayed strong in Asia’s third-largest economy, with the nation logging a blowout growth rate of 8.4% in the final three months of last year. Imports for gold, silver, and electronic goods rose in the month, the data showed.
A rise in crude prices also drove the nation’s import bill. India’s crude oil basket this month has averaged $83.19 a barrel till March 15, according to oil ministry data. That is the highest price since November when the basket had averaged $83.46 a barrel for the full month.
India’s outbound shipments increased as demand for items such as engineering products and chemicals gained pace.
“India exports have been able to withstand the difficult times,” Commerce Secretary Sunil Barthwal told reporters in New Delhi. The Red Sea crisis will not dampen order demand, he said.
While the trade deficit has widened, India’s current account gap remains manageable. The shortfall stood at 1% of gross domestic product in the July-September period.
Here’s more from the briefing:
- India and the UK are actively engaged in trade talks
- India- Oman free trade agreement will be concluded very soon
- The seventh round of trade talks with Peru will begin in early April
