According to official data released on Monday, merchandise exports increased for the third consecutive month in February, although slightly, by 0.6 % year on year to $27.9 billion, while the trade deficit widened to $12.6 billion. The trade deficit was $10.16 billion in February 2020. Imports increased by 6.9% to $40.5 billion last month, according to the report.
Exports fell 12.2% to $256, making to 1 billion in April-February of FY21, down from $291.8 billion the previous year. Imports fell 23.1 % to $340.8 billion over the same time. In January 2021, India exported about 300,000 tonnes of sugar predominantly to Afghanistan, African countries, Indonesia, and Sri Lanka, down from more than 700,000 tonnes in January 2020, according to dealers.
Oil imports fell 16.6% last month to $8.9 billion, while exports fell 40 % to $72 billion from April 2020 to February 2021. Oil meals, iron ore, rice (30.7%), carpet (19.4%), spices (18.6%), pharmaceuticals (14.7%), tobacco (7.7%), and chemicals were among the sectors that experienced positive export growth in February (1.2 per cent).
In response to the data, Federation of Indian Export Organizations (FIEO) president Sharad Kumar Saraf claimed that the marginal increase in exports was primarily due to container shortages across India, which restricted supply in the last week of the month due to increased Covid-19 cases in some states.
The Wholesale inflation has reached a 27-month peak. In New Delhi, wholesale price-based inflation rose for the second consecutive month in February, reaching a 27-month high of 4.1 %, as food, fuel, and power prices skyrocketed. In January, WPI inflation was 2%, and in February, it was 2.2 %. Overall, inflation increased broadly in February, with retail inflation hitting 5 %, up from a 16-month low of 4.6 % in January.
