India’s trade deficit shot up 61 per cent in February to $21.19 billion from $13.12 billion a year ago.

Over the 11 months of the fiscal (April to February), deficit jumped almost 90 per cent to $176.07 billion from $88.99 billion in the corresponding period a year ago.

In February, exports rose 22.36 per cent to $33.81 billion on account of a healthy growth in engineering, petroleum and chemicals, according to preliminary data released by the commerce ministry on Wednesday. Imports during the month jumped about 35 per cent to $55 billion.

Aditi Nayar, chief economist, Icra, said: “A rebound in oil and gold demand amid the waning of the third wave, along with rising global commodity prices fanned by escalating geo-political tensions, boosted imports and bloated the merchandise trade deficit above $21 billion in February 2022.

“Interestingly, non-oil non-gold imports moderated on a sequential basis in the shorter month even as the pace of the annual growth rose in February 2022 compared with January 2022.”

“While gold imports remained lower than February 2021, they nearly doubled sequentially in February 2022 as restrictions eased in parts of the country. We project gold imports at $48-50 billion in this fiscal, followed by a moderation in 2022-23 as the pent-up demand pales,” she said.

India’s merchandise export in April 2021-February 2022 was $ 374.05 billion, an increase of 45.80 per cent over $256.55 billion in April 2020-February 2021.

Imports during the 11-month period rose 59.21 per cent to $550.12 billion.

FIEO president A. Sakthivel said: “A growth of 22.36 percent in February has once again showcased the continuous resilience of India’s exports sector.”