Feb trade deficit dips to 5-month low amid fears of global trade war

February imports increased 10.4% to $37.8 bn; January trade deficit was $16.3 bn

Country's trade deficit narrowed to $12 billion in February, its lowest in five months, amid concern that a global trade war could hit its exports because of US President Donald Trump's decision to hike import taxes on steel and aluminum.

Merchandise exports are expected to touch $300 billion in the current fiscal year ending this month compared with $275.8 billion, mainly driven by a rise in commodity prices and strong demand in the US and Europe.

February merchandise exports were $25.8 billion while imports were $37.8 billion, Rita Teaotia, a top trade ministry official, told reporters on Thursday.

In the first 11 months