India's Trade Deficit For February 2014 Narrows

The data released by the Ministry of Trade And Commerce indicates that the trade deficit for the month of February 2014 in India has narrowed to USD 8.13 billion. It has narrowed down by 42% on a YoY basis as it stood at USD 14.12 billion for the month ended February 2013.

The exports for the month of February 2014 were valued at USD 25.68 billion (Rs 159858.16 crore), which was 3.67% lower in USD terms than the level of USD 26.67 billion reported during the same month last calendar year.

On the import front, during February 2014 they were valued at USD 33.82 billion representing a negative growth of 17.09% in USD terms and a negative growth of 4.06% in Rupee terms over the level of imports valued at USD 40.79 billion in February 2013.

The main highlight is that oil imports during February 2014 were valued at USD 13.70 billion, which is 3.1% lower than oil imports of USD 14.13 billion witnessed during February 2013. The non-oil imports too declined by 24.50% to stand at USD 20.12 billion as against USD 26.66 billion reported during the same month corresponding year.

Along with improving PMI, these figures are also pointing towards a revival in the economy. Hence, further strength in the INR cannot be ruled out in the near future. At present the INR is trading at Rs 60.69 per USD.