India: Trade deficit shrinks in February
March 16, 2015
More recent data related to India’s external sector showed that the trade deficit totaled USD 6.8 billion in February, which was below the USD 8.3 billion shortfall observed in the same month last year. February’s result represents the lowest deficit in 17 months. In the 12 months up to February, the trade deficit recorded USD 135.6 billion, which narrowed slightly from the USD 137.1 billion shortfall recorded in the 12 months up to January.
The narrowing in the trade deficit showed that imports contracted 15.7% annually in February, which followed the 11.4% fall registered in January. The reading, which marked a 12-month low, was largely the result of the sharp decline in oil prices. Accordingly, oil imports totaled USD 6.10 billion, which represented a 55.5% decrease compared to the same month of the previous year.
Meanwhile, exports contracted 15.0% year-on-year in February (January: -11.2% year-on-year).
Author: Ricardo Aceves, Senior Economist