Decrease in exports, imports reduces trade deficit – Usky News

NEW DELHI: India’s merchandise exports and imports shrank over 8% in February, weighed down by a gloomy global environment and falling commodity prices, which helped widen the trade deficit. Despite the recent weakness in numbers, the government is hopeful of ending the current fiscal with record exports, which could be in the region of $435-440 billion, up from last year’s level of $422 billion.
The latest data released by the Commerce Department estimated that merchandise exports fell 8.9% to $33 in February. 9 billion, the biggest decline since October, while imports were down 8.2% to $51. 3 billion. While exports have contracted during three of the last five months, imports have declined for the third month in a row, taking into account the revision in data.

The government is, however, optimistic due to a jump in services exports, which rose nearly 37% to $36. 9 billion in February, while imports rose 12% to $14. 6 billion. “We have maintained the momentum despite global headwinds. Exporters have maintained momentum. Services exports are doing very well. We will do better than the target of $750 billion (for exports of goods and services). Business Secretary Sunil Barthwal told reporters.
Merchandise exports are expected to grow by 7.5% to $406 billion, while imports are expected to grow by 18.8% to $653 billion during April February 2022-23. 5 billion, resulting in a trade deficit of $247. 5 billion. The increase in exports was led by shipments of petrol and diesel, which were estimated to have risen by nearly 50% to more than $86 billion, although they were down to about $29 billion in February due to softening oil prices. % had fallen. India’s top export item – engineering goods – has, however, had a tough year falling close to 4% during the 11 months ended February and was down nearly 10% in February.
During February, 17 of the top 30 export products saw declines, while electronic goods rose 30% to $1. 9 billion. During April-February, electronics exports were estimated to be 50% higher at $20. 7 billion. Part of the growth is due to smartphones, whose exports are estimated to be Rs 67,333 crore (about $8 billion) during April-January.
On the import front, gold has led the decline in February as well as during the year so far, with pharma and fruits and vegetables being the other contributors. During February the gold consignment was estimated to be down 45% to $2. 6 billion and was down almost 30% at $31. 7 billion during April-February.