India's trade deficit widens to $18.71 billion in February, exports at 11-month high

The Commerce Ministry on Friday, March 15, released the trade data for the month of February. The data revealed that the trade deficit widened to $18.71 billion in February, from $17.76 billion in January. Trade deficit refers to the difference between a country's imports and exports, and it is an essential economic indicator.

The figures show that exports rose by 11.9% from the year-ago period to $41.40 billion, the highest in 11 months. On the other hand, imports increased by 12.2% to $60.11 billion, a four-month high.

According to the February data, the exports stood at $41.4 billion in February, up from $37.01 billion year-on-year. Likewise, imports also rose on a year-on-year basis. The imports for the month were valued at $60.11 billion, up from $53.58 billion year-on-year.

In the previous month, merchandise exports fell 5% month-on-month and 7% on a year-on-year basis. The goods imports fell 13% month-on-month and almost 4% year-on-year. The imports were valued at $50.66 billion in January, and exports were valued at $32.91 billion.

The trade deficit is a critical concern for India as it impacts the country's foreign exchange reserves and can lead to an increase in the current account deficit.