India’s export at 11-month high even as February trade deficit widens to $18.7 billion

The cumulative value of merchandise exports clocked by India in February 2024 came in at $41.4 billion, which is the highest in the past 11 months. The last time it was higher was in March 2023, when the monthly exports were valued at $41.96 billion.

Even as the exports accelerated, the country’s merchandise trade deficit – the difference between imports and exports – widened to $18.71 billion in February 2024, as compared to $16.57 billion in January this year.

While exports grew to an 11-month high, imports also jumped to a 4-month high of $60.11 billion. In percentage terms, the imports surged by 12.2%, the highest since the 12.6% growth recorded in September 2022.

Commerce Secretary Sunil Barthwal said the trade data for last month has “surpassed all expectations.” The exports are at an 11-month high despite the prevailing tensions in the Suez Canal, the ongoing Ukraine war and tighter monetary policies globally, he told reporters.

For the period between April 2023 and February 2024, the trade deficit stood at $225.20 billion. This is wider as compared to the trade gap of $245.94 billion clocked in the first 11 months of FY23.

As per the data shared by the commerce ministry, the surge in exports was driven by electronic goods, at 54.81%, followed by a 33.04% growth in the export of organic and inorganic chemicals, 22.24% growth in pharmaceuticals and a 15.9% growth in engineering goods.

"For the month of February 2024, under merchandise exports, 22 of the 30 key sectors exhibited positive growth as compared to the same period last year (February 2023)," a release issued by the commerce ministry stated.