Exports contracted in Feb; March could be 'challenging'

India to wait for new US tariff architecture before signing deal

- SHREYA NANDI

India’s merchandise exports in February contracted for the first time in four months, falling 0.8 per cent to $36.61 billion, with officials cautioning that March could remain “challenging” as the West Asia crisis has disrupted freight movements through the Strait of Hormuz.

The data released by the commerce department showed merchandise imports rose 24.1 per cent to $63.7 billion due to record prices of gold and silver in February, leading to a trade deficit of $27.1 billion. While in February last year, the trade deficit was lower at $14.4 billion, on a sequential basis, the deficit narrowed in February this year from $34.7 billion a month ago.

Commerce Secretary Rajesh Agrawal said the year had been challenging but despite that exports of goods and services stood at $790.86 billion in April-February, up 5.8 per cent year-on-year.

Exports of goods grew 18 per cent year-on-year at $402.9 billion.