NEW DELHI: India’s trade deficit narrowed to $12 billion in February from an over four-year high of $16.30 billion recorded in January, commerce secretary Rita Teaotia said on Thursday.
Exports grew 4.5 per cent to reach $25.8 billion, while imports rose by 10.4 per cent to $37.8 billion, according to the government data. The rise in imports was led by higher crude oil prices as oil imports rose by 32 per cent in February.
The government is looking at a 6.5 per cent export growth for the year, she said, adding that the country’s merchandise exports are showing continuous positive growth.
The RBI had said export growth was expected to improve. Export sectors, which are recording healthy growth so far, include chemicals, engineering goods and petroleum products.
During the April-February period, exports recorded a growth of 11 per cent to $273.7 billion, while imports grew by 21 per cent to $416.87 billion as against the same period of the last fiscal.
On the tensions following the Donald Trump administration’s challenge against Indian export subsidy programmes at the World Trade Organisation, Teaotia said New Delhi will respond to the US challenge within 60 days.