India’s merchandise trade deficit narrowed to $27.1 billion in February from $34.68 billion in January, as per a report by PTI.
Merchandise exports marginally rose to $36.61 billion from $36.56 billion in January, while imports fell to $63.71 billion from $71.24 billion.
Key highlights of the trade data
India’s exports during April-February this fiscal rise 1.8% to $402.93 billion, as per a report by PTI.
February data came at a time when shipments face risks from the continued Middle East conflict. The crisis that began on February 28 with military actions by the US and Israel against Iran has led to widespread disruptions in trade routes, particularly in the Strait of Hormuz.
According to PTI, while briefing the media on the trade data, Commerce Secretary Rajesh Agrawal said that the country’s exports are doing well despite challenges.
Agrawal said, according to PTI, that exports in March would see a southward trend due to the logistical challenges on account of the West Asia crisis.
Highlights from January trade data
In January, India’s exports rose marginally by 0.61% to $36.56 billion. Imports rose 19.2%- the highest so far in FY26- to a three-month high of $71.24 billion in January, driven by a sharp rise in inbound shipments of gold and silver due to higher prices.
Trade deficit widened to a three-month high of $34.68 billion.
Gold imports surged 349.22% to $12 billion during the month under review, while silver imports jumped by 127% to $2 billion. India mainly imports the yellow metal from Switzerland, from where the inbound shipments have climbed 836.85% to $3.95 billion in January.
Oil imports, however, dipped 0.24% to $13.4 billion in January.
Cumulatively during April-January of FY26, the country’s exports rose by 2.22% to $366.63 billion. Imports grew 7.21% to $649.86 billion, leaving a trade deficit of $283.23 billion during the nine-month period of 2025-26. The gap was $247.38 billion in April-January 2024-25.
During April-January this fiscal, the total exports are estimated at $720.76 billion as against $679.02 billion recorded in the same period of the previous fiscal.