The government has taken active steps to reduce imports in response to the growing trade deficit. India’s merchandise exports decreased 8.8% in February to $33.88 billion, compared to the same month last year, reflecting the global economic slowdown. Comparing the first four months of current fiscal year (April through February), merchandise exports increased 7.55 percent. In February, imports of goods fell 8.2% as well, leaving a $17.43 billion trade deficit. The current fiscal year’s merchandise trade deficit totaled $247.53 billion. Over the same time period last year, it was roughly $172 billion. The overall (merchandise and services) trade deficit has decreased as a result of consistently strong growth in service exports.
