India’s merchandise trade deficit narrowed to an over 3-year low at $14.05 billion in February from $22.99 billion in January as exports held steady during the month while imports declined, according to the latest data compiled by the Ministry of Commerce and Industry.
The country’s merchandise exports increased by 1.3 per cent to $36.91 billion in February, as compared to $36.43 billion in January, while imports fell by 16.3 per cent to $50.96 billion compared with $59.42 billion in the previous month.
“The trade deficit is currently at its lowest since August 2021 due to a steep decline in imports, steady level of exports, and a high base effect from last February,” Additional Secretary, Ministry of Commerce and Industry, L Satya Srinivas, said.
For the 11 months of the financial year so far, trade deficit stood at $261.05 billion. Merchandise exports remained flat, while imports rose 5.7 per cent from the same period a year ago.
In the services sector, exports were recorded at $35.03 billion, a 9.1 per cent decrease from January, while imports similarly declined to $16.55 billion. Gold imports for the financial year so far stood at $53.53 billion, while oil imports for the period remained $166.73 billion. Non-oil exports were recorded at $337.01 billion.
The major drivers of merchandise exports growth include electronic goods, engineering goods, drugs & pharmaceuticals, rice and gems & jewellery.
India’s smartphone exports crossed a staggering Rs 1.75 lakh crore ($21 billion) in 11 months of 2024-25 (April-February) which constitutes a 54 per cent jump over the corresponding figure for the same period of 2023-24, according to the India Cellular & Electronics Association.
Minister for Electronics and Information Technology Ashwini Vaishnaw has stated that he expects smartphone exports to reach $20 billion (Rs 1.68 lakh crore,) during 2024-25, but the estimate has already been exceeded in 11 months of the current financial year.
India’s electronics goods exports, led by smartphones, have been accelerating in recent years on the back of the government’s Production Linked Incentive (PLI) Scheme which has succeeded in attracting foreign tech giants such as Apple and its suppliers, looking to set up alternative supply chains outside China after the Communist country came under US sanctions.
The Centre’s PLI scheme has boosted exports and reduced imports, as domestic production now meets 99 per cent of domestic demand.
(With inputs from IANS)
