In what could be seen as a boost to the economy, goods exports in February entered the double digit growth track for the first time in the on-going fiscal year.
Fuelled by a surge in shipments of engineering goods, iron ore, and petro products, exports posted a year-on-year increase of 17.48 per cent, rising to $24.49 billion.
However, a higher, 21.76 per cent rise in imports to $33.38 billion, mostly due to an increase in the value of petroleum imports, widened the trade deficit to $8.89 billion compared with $6.57 billion in February 2016.
The spurt in exports during the month, which was the sixth consecutive month of growth, increased total exports in the April-February 2016-17 period to $245.41 billion, which is 2.52 per cent higher than exports in the same period last year.
Export bodies are positive about the bounce-back but remain cautious about the uncertainty in global markets.
“With overall uncertainty still looming around the globe, the need of the hour is to further diversify the product basket with more focus on high-tech products where India’s share in global trade is very low,” said SC Ralhan, President, FIEO.
Exports in 2016-17 are now set to cross the last fiscal year’s figure of $262 billion. This will end their annual decline since 2014-15.
Exports fell 15.5 per cent in 2015-16 to $262 billion. In 2014-15, they stood at $310.33 billion, 1.23 per cent lower than the $314.40 billion in 2013-14.
In February, growth across 23 out of 30 major product groups has been positive.
Total imports in April-February 2016-17, at $340.69 billion, were 3.67 per cent lower than in the comparable period of the previous year. The trade deficit declined to $95.28 billion from $114.31 billion in the year-ago period.