According to the latest data released, the exports from India rose 4.28 percent to $24.62 billion in the month of February.

The growth rate is slowest in three months and much lower from the last 11 months average of 21.42 percent. Imports increased by 20.65 percent to $39.78 billion in February. The trade deficit for the month was $15.16 billion.

The country's trade deficit increased to US $ 47.7 billion in the quarter against US $ 31.4 billion previous year. The merchandise exports grew by 7.9 per cent in the quarter compared to 39.9 per cent in the same quarter of the previous year. On the other hand, orts rose 22 per cent in the same period compared to 24.7 per cent.

"The balance of payment experienced a significant stress in Q3 as trade deficit widened and capital inflows fell far short of financing requirements resulting in significant drawdown of foreign exchange reserves," the central bank said.

The RBI also said that the net services in the third quarter increased by 20.3 per cent against 47.5 per cent in the same period previous year while the net secondary income receipts involving private transfers increased 30.6 per cent to US $ 17.5 billion from US $ 13.4 billion.

The report showed that the CAD increased to US $ 53.7 billion or 4 per cent of GDP from US $ 39.6 billion or 3.3 per cent of GDP during the April-December period on the financial year.