The Trade Deficit for Feb 2014 has again come at a low $8bn. This is the lowest since Sep 2013.
Imports declined over 17%, with oil imports down 3% and non oil imports down 24%.
However we are seeing a declining trend in exports as well, and it seems like countries abroad are cutting down on their imports from India too. Exports were down 3% from the previous year, and if you look at the graph closely, form a strong downward trend.
How do exports go down in a situation when the rupee has fallen over 10% over last year? The answer is evident – the world we export to either doesn’t want our goods or is cutting down its trade deficit too.