India's exports decline by 8.8% to $33.88 billion in February 2023, trade deficit narrows

While the figures for February indicate a moderation in the trade deficit, the overall trend for the current fiscal year is a cause for concern. The data shows that the trade deficit for merchandise goods has risen by 43 percent to $248 billion for April-February of the current fiscal year, up from $173 billion in the same period last year. This increase can be attributed to a rise in the value of imports, particularly in the areas of petroleum, gold, and electronics.

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. The government has been taking measures to address the trade deficit, such as promoting exports, reducing import dependency, and increasing domestic production. However, these efforts will take time to yield results.