New Delhi, Mar 11 (KNN)India’s trade deficit fell to USD 14.92 billion in Feb 2013 compared to USD 20 billion in January, reflecting a recovery in global markets, according to an official statement issued by the government.
“Trade gap will narrow down as export is picking up and the positive trend will continue in the future,”Commerce Secretary SR Raoassured.
“The Government will come up with a foreign trade policy before March end to push the exports,”Rao added, referring to the incentives the government is expected to announced in the forthcoming foreign trade policy (FTP).
India’s exports were up by 4.3 per cent at 26.26 billion in February while imports also rose 2.6 per cent at USD 41.48 billion.Exporting sectors which performed well include engineering goods, textiles, rice, oil meals, pharmaceutical and chemicals.
While the import of gold and silver rose by 15.23 per cent in February, crude imports increased by 15.46 per cent.
India posted its second-highest ever monthly trade deficit of USD 20 billion in January as imports surged to record highs, piling pressure on a widening current account deficit and limiting the scope for the Reserve Bank of India to cut interest rates.
 
Exports rose an annual 0.8 per cent to USD 25.59 billion in January, the first time since the start of the fiscal year in April last year, on the back of better sales of engineering goods, drugs and gems.   On the other hand, imports rose 6 per cent to USD 45.58 billion, their highest ever monthly total.As for imports of oil, the single biggest item, it rose 6.9 per cent from a year ago to USD 15.9 billion.
 
The January trade deficit was the second worst on record, the worst being USD 21.9 billion posted in Oct 2012. (KNN/SK)