Trade deficit narrows to $9.59 billion in Feb, exports grow by 2.4%

The largest component of the import bill, crude oil, saw inbound shipments declined by 8 per cent, up from the 3.59 per cent fall in the previous month

Exports took a beating for the fourth consecutive month, as growth in February fell to 2.44 per cent, with major foreign exchange earners such as gems and jewellery, engineering goods, and petrochemicals seeing sluggish growth.

Imports also contracted for the second time in the past three months. As a result, the trade deficit figures fell to their lowest level in the current financial year (2018-19 or FY19). The effective trade deficit fell to $9.59 billion in February from $14.73 billion in January.

Outbound trade had risen by 3.74 per cent in January, as exports from the same sectors had taken a beating.