Export growth fell 4.3% in Feb due to poor International demand
Indian importer are more conscious about their business and govt. also tried to go Indian imports more fasters than exports in February because of weaken demand in major exports markets like the United States and Europe.
This trade deficit has pushed govt. to revise the full-year trade deficit projections on Friday, so that there will be no impact over India’s current account deficit and further value of the rupee.
As per source report, the trade deficit widened to $15.2 billion during this month from January when it was $14.8 billions.
On basis of Trade data, Trade Secretary Rahul Khullar said that Merchandise exports grew an annual 4.3 percent to $24.6 billion in February, while imports grew 20.6 percent to $39.8 billion.
Kullar said, “Over the last five months…there has been a very large ballooning of the balance of trade deficit.”
Last Fiscal year, the trade deficit was estimated $104 billion, but this year ending on March 31 Khullar revised up trade deficit projection to $175 to $180 billion from an earlier estimate of $160 billion.
This time exports struggling to maintain the growth rate as demand in major export markets remain weak. Last month as per Khullar’s projections on the current account deficit, GDP was reach 3.5 percent that was the biggest worst position in the last eight years, as the full-year trade shortfall was seen at $160 billion.
Moreover, Exports reached $267.4 billion between April and February, though the full-year target was of $300 billion.
It is expected that if the shortfall figure in trade that widen the current account deficit will weaken the rupee which fell nearly 16 percent against the U.S. dollar in 2011 before recovering this year, making it more reliant on volatile capital inflows to fund the gap.
Tags: business, Export, Featured, GDP, imports, India Trade Export, International demand, NTN, Trade, trade gap, Trade Secretary Rahul Khullar
