With a view to boost exports, the government will announce incentives for exporters in the forthcoming foreign trade policy (FTP).
Exports had entered positive zone after a gap of eight months, recording a 0.82 percent growth in January.
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Other sectors which performed well include rice, oil meals, pharmaceutical and chemicals.
Rao said the Ministry is intensely engaged with stakeholders for the forthcoming FTP, expected to be announced by end of this month.
"We are actively involved in consultations with chambers, export promotion councils, various departments and state governments and trying to arrive at a package of incentives which would be announced shortly," he said.
Special economic zones (SEZ), which are export hubs of the country, may also get incentives along with the FTP.
Imports rose by 2.6 percent to USD 41.18 billion in February, leaving a trade deficit of USD 14.92 billion from USD 14.93 in February 2012.
Last month trade deficit had widened to around USD 20 billion, the second highest figure ever in a month.
"We certainly expect that trade deficit to narrow as exports are picking up," Rao said.
However, during the April-February period, exports declined by 4 percent to USD 265.95 billion.
Imports during the 11-month period grew by a mere 0.25 percent to USD 448 billion, leaving a trade deficit of USD 182.1 billion.
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