India’s April-February trade deficit higher at $125 bn despite cheap oil

India is expected to close the financial year with a higher current account deficit with the trade deficit already touching $125.22 billion (in absolute terms) at the end of February, a month ahead of the financial year close of 31 March.

Trade deficit for April-February 2014-15 was estimated at $125.22 billion, which was higher than the deficit of $124.84 billion during April-February 2013-14.

Despite an over 55-per cent fall in the international prices of crude oil, the largest single item in the country's import basket, India added $6.85 billion to its current year trade deficit in February with exports worth $21.55 billion against imports worth $28.39 billion, which took the cumulative trade deficit for April-February 2014-15 to $125.22 billion.

India's imports fell 15.02 per cent year-on-year in February 2015 to $21.55 billion (Rs133,662.08 crore) from $25.35 billion (Rs157,769.13 crore) during February 2014.

Cumulative value of exports for the April-February 2014-15 period stood at $286.58 billion (Rs1,747,451.32 crore) against $284.07 billion (Rs1,719,888.25 crore) in the year-ago period - a growth of 0.88  per cent in dollar terms and a 1.60 per cent growth in rupee terms.

Imports during February 2015 were valued at $28.39 billion (Rs176,139.17 crore), which was 15.66 per cent lower in dollar terms and 15.92 per cent lower in rupee terms over the level of imports valued at $33.67 billion (Rs209,495.33 crore) in February 2014.

Cumulative value of imports for the April-February 2014-15 period stood at $411.80 billion (Rs2,510,824.23 crore) against $408.92 billion (Rs2,463,480.16 crore) - a  growth of 0.71 per cent in dollar terms and a 1.92 per cent increase in rupee terms over the same period last year.

Oil imports during February 2015 were valued at $6.10 billion, which was 55.49 per cent lower than oil imports valued at $13.71 billion in the corresponding period last year.

Oil imports during April-February 2014-15 were valued at $130.85 billion, which was 12.24 per cent lower than the oil imports worth $149.10 billion in the corresponding period last year.

Non-oil imports during February 2015 were estimated at $22.29 billion, which was 11.69 per cent higher than non-oil imports valued at $19.96 billion in February 2014.

Non-oil imports during April-February 2014-15 were valued at $280.96 billion, which was 8.14 per cent higher than the level of such imports valued at $259.82 billion in April-February 2013-14.