India Trade February 2016


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.

FocusEconomics Consensus Forecast panelists expect exports to grow 4.3% in FY 2016, reaching USD 283 billion. In FY 2017, the panel sees exports expanding 8.4% to USD 307 billion.

Author: Angela Bouzanis, Lead Economist

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India Trade Chart

India Trade12m February 2016

Note: 12-month sum of trade balance in USD billion and annual variation of the 12-sum of exports and imports in %.
Source: Ministry of Commerce and Industry and FocusEconomics calculations.

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