India Trade Deficit Narrows To $27 Billion
India’s merchandise trade deficit narrowed to $27.1 billion in February from January’s higher level, helped by a monthly decline in imports even as export growth remained weak. The latest trade data comes at a time when India is also facing fresh external pressures from disrupted shipping routes, higher energy costs and uncertainty in major export markets.
India Trade Deficit Narrows In February
Official data showed India’s merchandise exports stood at $36.61 billion in February, while imports were at $63.71 billion, resulting in a trade deficit of $27.1 billion. Although the gap narrowed from January, it remained significantly wider than the level recorded in February last year. The monthly improvement was largely driven by a moderation in imports, while exports stayed almost flat and showed limited momentum.
Imports Stay High Despite Monthly Easing
Imports remained elevated in February, reflecting continued demand for key commodities and industrial goods. Higher inflows of items such as gold, silver and electronics added pressure to the import bill, even though the overall figure eased from the previous month. This kept the trade gap under strain despite the sequential improvement. The data suggests that India’s external account is still vulnerable to global commodity prices and shifts in domestic demand.
Export Outlook Faces Global Pressure
The February numbers arrive at a difficult moment for India’s export sector. Trade officials have already flagged concerns about logistics disruption, especially after tensions in West Asia affected shipping movement through the Strait of Hormuz. Uncertainty in global tariffs and softer demand in some markets are also adding pressure. While total goods and services exports for the financial year so far have shown growth, the latest monthly merchandise data indicates that exporters may continue to face a challenging environment in the near term.
