India's export growth eases to 4.5% in February 2018

Trade deficit narrows to five-month low of US$ 11.98 billion in February 2018

India's merchandise exports rose at moderate pace of 4.5% to US$ 25.83 billion in February 2018 over a year ago. However, merchandise imports growth decelerated sharply to 10.4% at US$ 37.81 billion. The trade deficit narrowed to five month low of US$ 11.98 billion in February 2018 from US$ 16.3 billion in January 2018, while increased from US$ 8.90 billion in February 2017.

Oil imports galloped 32.1% to US$ 10.19 billion, while the non-oil imports rose 4.1% to US$ 27.62 billion in February 2018 over February 2017. The share of oil imports in total imports was 27.0% in February 2018, compared with 23.0% in February 2017. The price of India's basket of crude oil increased 15.8% to US$ 63.54 per barrel in February 2018 over February 2017.

Among the non-oil imports, the major contributors to the overall rise in imports were electronic goods imports rising 18.9% to US$ 4.03 billion, machinery, electrical & non-electrical 23.0% to US$ 2.88 billion, pearls, precious & semi-precious stones 15.9% to US$ 2.59 billion, organic & inorganic chemicals 23.9% to US$ 1.76 billion, coal, coke & briquettes etc 17.7% to US$ 1.93 billion, artificial resins, plastic materials etc 31.6% to US$ 1.18 billion, non-ferrous metals 32.7% to US$ 1.02 billion and iron & steel 21.4% to US$ 1.15 billion.

The imports also improved for machine tools by 46.5% to US$ 0.33 billion, wood & wood products 28.8% to US$ 0.46 billion, chemical material & products 20.2% to US$ 0.54 billion, medicinal & pharmaceutical products 23.4% to US$ 0.45 billion, professional instrument, optical goods etc 19.8% to US$ 0.36 billion and metaliferrous ores & other minerals 6.3% to US$ 0.75 billion.

However, the imports have declined for transport equipment by 49.1% to US$ 1.26 billion, gold 16.9% to US$ 2.89 billion and vegetable oil 11.7% to US$ 0.83 billion in February 2018.

On exports front, the petroleum products recorded an increase in exports by 27.4% to US$ 3.24 billion, followed by organic & inorganic chemicals 30.4% to US$ 1.67 billion, drugs & pharmaceuticals 13.9% to US$ 1.39 billion, electronic goods 29.7% to US$ 0.60 billion, rice 21.3% to US$ 0.68 billion, and plastic & linoleum 19.3% to US$ 0.59 billion. The exports also moved up for marine products by 13.2% to US$ 0.46 billion, ceramic products & glassware 32.3% to US$ 0.19 billion and spices 9.6% to US$ 0.27 billion in February 2018.

Further, the exports has improved for leather & leather products by 3.5% to US$ 0.42 billion, fruits & vegetables 5.5% to US$ 0.27 billion, man-made yarn/fabrics/made-ups etc 3.0% to US$ 0.40 billion and handicrafts excluding handmade carpet 4.6% to US$ 0.16 billion in February 2018.

However, the exports declined for engineering goods by 1.9% to US$ 6.55 billion, gems & jewellery 5.1% to US$ 3.81 billion, RMG of all textiles 10.2% to US$ 1.44 billion, and cotton yarn/fabrics/made-ups, handloom products etc 0.3% to US$ 0.86 billion, while it also declined for mica, coal & other ores, minerals including processed minerals by 4.4% to US$ 0.33 billion, and meat, dairy & poultry products 28.6% to US$ 0.28 billion in February 2018.

Merchandise exports in rupees increased 0.3% to Rs 166306 crore, while imports moved up 6.0% to Rs 243420 crore in February 2018 over February 2017. The trade deficit rose to Rs 77115 crore in February 2018 compared with Rs 63867 crore in February 2017.

India's merchandise exports increased 11.3% to US$ 273.73 billion, while merchandise imports surged 21.1% to US$ 416.87 billion in April-February 2018. An increase in imports was driven by a 27.2% jump in oil imports to US$ 98 billion. India's merchandise trade deficit galloped to US$ 143.13 billion in April-February 2018 from US$ 97.65 billion in April-February 2017.

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