Trade deficit widens to $18.7 billion in February; imports, exports rise 12.2%, 11.9% YoY

India's trade deficit widened to $18.71 billion in February this year, after hitting a nine-month low in the month before, government said on Friday.

Economists had pegged India's February trade deficit at $18.30 billion, as per a Reuters poll.

India's trade deficit in January 2024 stood at $17.5 billion while in February 2023, it was $16.6 billion. A narrowing trade deficit tends to help limit India’s current account deficit and strengthen the Rupee, which has been leading among Asian currencies in terms of performance this year.


Merchandise imports in February rose 12.2 per cent on a year-on-year basis to $60.11 billion. In January, imports stood at $54.4 billion. Exports increased by 11.9 per cent on an annual basis to $41.4 billion. In January, exports stood at $36.9 billion.

In February, services exports were $32.35 billion, while imports were $15.39 billion. In January, services exports were $32.80 billion and imports were $16.05 billion.

Talking to reporters, Commerce Secretary Sunil Barthwal said growth in exports during February was the highest in 11 months of the current financial year.

He also exuded confidence that overall exports during fiscal 2023-24 would be higher than last year's record exports.