India's Trade Deficit Widens In February
India's trade deficit widened as exports fell and imports rose over the previous month.
The gap rose to $21.19 billion from $17.42 billion in January 2022, according to preliminary data by the Ministry of Commerce and Industry.
Exports rose 22.4% year-on-year but fell 2% over the previous month to $33.8 billion.
Imports rose 35% year-on-year but rose 5.9% over the preceding month to $55 billion.
Non-petroleum and non-gems & jewellery exports rose 18.3% year-on-year to $26.6 billion.
Non-petroleum, non-gems & jewellery imports rose 31.7% year-on-year to $31.6 billion.
A rebound in oil and gold demand amid the waning third Covid wave, along with rising global commodity prices fanned by escalating geo-political tensions, boosted imports and bloated the merchandise trade deficit, said Aditi Nayar, chief economist at ICRA Ltd.
The duration of the Russia-Ukraine conflict, and its impact on commodity prices, especially crude oil, will determine the magnitude of the merchandise trade deficit in March 2022, even as year-end fulfilment of export orders may provide a buffer, Nayar said.
Key Export Items
Engineering goods exports stood at $9.3 billion, up 31.3% year-on-year.
Petroleum product exports at $4.1 billion were 66.3% higher than a year earlier.
Gems and jewellery exports were at $3.1 billion, 15.8% higher on an annual basis.
Drugs and pharmaceutical exports were at $1.9 billion, 3.1% lower over the year ago.
Key Import Items
Petroleum, crude and product imports were up 66.6% over a year earlier at $15 billion.
Electronic goods imports were at $6.2 billion, up 28.9% over a year earlier.
Gold imports at $4.7 billion were 11.5% lower than a year ago.
Imports of coal, coke and briquettes were 117% higher than a year ago at $2.8 billion.
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