India’s merchandise trade deficit narrowed to $17.43 billion in February amidst a decline in imports and exports, according to the data released by the commerce ministry on Wednesday.
The numbers are also marginally lower as against the preceding month, as the trade deficit came in at $17.76 billion in January this year.
Exports dipped in February for the third consecutive month by 8.8 per cent to $33.88 billion as compared to $37.15 billion in the same month last year.
Imports, meanwhile, also dipped by 8.21 per cent to $51.31 billion as compared to $55.9 billion recorded in the corresponding month last year.
A trade deficit occurs when a country imports more than it exports. In other words, when a country buys more than it sells, it has a trade deficit.
During April-February this financial year, however, India’s overall merchandise exports surged by 7.5 per cent to $405.94 billion.
Imports during the period rose by 18.82 per cent to $653.47 billion.
Meanwhile, in the US, trade deficit grew to the widest in three months at the start of the year, reflecting a pickup in imports of merchandise.
The trade gap in goods and services increased 1.6% to $68.3 billion in January from a month earlier, Commerce Department data showed. The figures aren’t adjusted for inflation. The median estimate in a Bloomberg survey of economists called for a $68.7 billion gap.
The value of imports increased 3% to $325.8 billion, while exports climbed to $257.5 billion.
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