Exports Shrink in February, India Will Not Reach Its Stipulated Targets for 2013-14

In the latest report released by the Indian Commerce Ministry states that the exports from India have fallen for the first time in last 8 months. Though it is not a sign of worry, the ministry does accept that they will not be able meet the predetermined target of $325 Billion for the fiscal ending March 31, 2014. Till December, 2013 the target seemed to be achievable. But with the fall, the ministry will fall short of its target. March is also not looking very bright.

The current expected forecast does suggest that the exports will cross $300 billion. Change in exports is on the positive side for the first 11 months of 2013-14 fiscal. Ending Feb, 2014 the exports are up by 4.7% for the same period of 2012-13.

Exports are not the only thing that shrunk in Feb 2014. Imports also came down by large numbers. This cushioned the trade deficit to quite an extent. India is trying to control the trade deficit for this fiscal to less than $40 billion and will present the final version after the month of March, 2014 is over.