New Delhi: Falling for the straight third month, India's exports declined steeply by over 15 percent to USD 21.54 billion in February, even as trade deficit narrowed to USD 6.85 billion.
The decline in outbound shipments has been mainly on account of weak global demand.
The fall in imports by 15.66 percent to USD 28.39 billion has led to improvement in the trade deficit figures which declined to 17-month low of USD 6.84 billion in February.
The deficit, which reflects higher imports than exports, was USD 8.32 billion in January.
"Contraction in global demand, lowering of prices of metal and commodities as well as volatility in currencies are largely responsible for such dismal performance," exporters' body FIEO President M Rafeeque Ahmed said.
Cumulative value of exports during April-February 2014-15 was USD 286.58 billion, as against USD 284.07 billion, up 0.88 percent, over the same period last year.
"The muted 2 percent growth of services exports in y-o-y terms in January 2015 and 15 percent contraction in merchandise exports in February 2015 underscore the weak demand for Indian exports in the context of sluggish growth of global economic activity. Curtailed demand for Indian exports remains a risk factor that may temper the growth of Indian economic activity going ahead," rating agency ICRA said.
Imports during February were valued at USD 28.39 billion, while it was USD 33.66 billion in the year-ago month, down 15.65 percent.
"The trade deficit for April-February, 2014-15 was estimated at USD 125.22 billion which was higher than the deficit of USD 124.84 billion during April-February, 2013-14," the ministry said.
Oil imports during February were valued at USD 6.101 billion, 55.49 percent lower than USD 13.706 billion in the year-ago period. Oil imports during April-February, 2014-15 totalled USD 130.84 billion, down 12.24 percent year-on-year.
"All three major contributors - engineering, petroleum products and gems and jewellery have shown a negative trend, EEPC India Chairman Anupam Shah said.
The Commerce Ministry data further said that services exports (receipts) during January, were valued at USD 14.250 billion and imports (payments) totalled USD 7.78 billion, leaving a trade surplus (net exports) of USD 6.46 billion in January.
