India's trade deficit narrows; exports up by 2.44%, imports decline by 5.4%

New Delhi, March 23: Releasing a worth while data today, the Commerce Ministry narrated the India’s blooming economic position as the trade deficit for the month of February this year have narrowed to 9.6 billion dollars.

 

 

The country's exports in the month aligned have grew by 2.44 per cent year on year to 26.67 billion dollar while imports declined by 5.4 per cent to 36.26 billion dollars. It is stated by the ministry that the exports grew on account of higher shipments in sectors such as pharmaceuticals, engineering and electronics.

 

However, the gap between imports and exports was 12.3 billion dollars in February 2018. Trade deficit being an economic measure of international trade in which a country's imports exceed its exports, it represents an outflow of domestic currency to foreign markets.

Further, usually referred to as a negative balance of trade (BOT), it typically occurs when a country fails to produce enough goods for its residents. However, in some cases, a deficit can signal that a country’s consumers are wealthy enough to purchase more goods than their country produces.