India: Trade deficit narrows in February
March 16, 2016
Recently released data related to India’s external sector showed that the trade deficit totaled USD 6.5 billion in February, which was a smaller shortfall over the USD 6.7 billion deficit observed in the same month last year. For the 12 months up to February, the trade deficit recorded USD 125.2 billion, which was broadly unchanged from the 125.4 billion gap tallied in the 12 months up to January.
The narrowing in the trade deficit showed that imports contracted 5.0% annually in February, which was a significantly smaller drop than the 11.0% plunge tallied in January. The low-oil-price environment has caused the value of India’s imports to drop. Accordingly, oil imports totaled USD 7.4 billion in February, which represented a 42.6% decrease compared to the same month last year.
Meanwhile, exports fell 5.7% in February, which was a smaller fall than January’s 13.6% contraction and marked the best result since December 2014.