Exports grow fastest in 20 months; trade gap widens

India's merchandise exports grew at the fastest pace in 20 months at 11.9 per cent in February, overcoming the Red Sea crisis and falling commodity prices.

- ASIT RANJAN MISHRA

Data released by the commerce department showed merchandise imports grew 12.2 percent a 17-month high to $60.1 billion in February, leading to a trade deficit of $18.7 billion during the month.

"This is the highest exports in 11 months (in value terms). We have surpassed all predictions.

March figures should also be very good. It shows resilience in the export sector.

The 2024-25 financial year will also be very good," Commerce Secretary Sunil Barthwal told reporters.

During April-February merchandise 2023-24, exports contracted 3.45 percent to $395 billion, while imports shrunk 5.3 percent to $620.2 billion, leading to a trade deficit of $225.2 billion.

Ashwani Kumar, president, the Federation of Indian Export Organisations, emphasised the need to address the Red Sea challenges by ensuring the availability of marine insurance to exporters and rational increases in freight charges