Exports up 4% in February as global markets recover

Imminent signs of recovery in the global markets helped Indian exports grow by 4.25 per cent to $26.26 billion for the second straight month this February.

 Exports came in the positive zone after a gap of eight months and recorded a 0.82% growth in January.

To boost exports further, the government is expected to announce certain policy initiatives in its forthcoming Foreign Trade Policy (FTP) to lend the much-needed fillip to the sector which is showing definitive signs of recovery and revival.

“Europe is performing better now. The decline has been arrested. Sectors which have large weightage especially engineering has started performing better and refined oil too. There is also a marginal improvement in textiles exports,” commerce secretary SR Rao told reporters here.

Other sectors which performed well include rice, oil meals, pharmaceutical and chemicals.

“We certainly expect that trade deficit to narrow as exports are picking up,” Rao added.

Special Economic Zones (SEZ) which are export hubs of the country may also get incentives along with the FTP.

Imports rose by 2.6% to $41.18 billion in February leaving a trade deficit of $14.92 billion from $14.93 in February 2012. Last month trade deficit had widened to around $20 billion the second highest figure ever in a month.