India’s Merchandise Exports Slip Slightly in February; Trade Deficit Widens to $27.1 Billion

India’s Merchandise Exports Slip Slightly in February; Trade Deficit Widens to $27.1 Billion​

India’s merchandise exports recorded a marginal decline in February, while imports rose sharply, pushing the country’s trade deficit higher, according to government data released on Monday, March 16.

Exports Dip Marginally in February​

India’s merchandise exports stood at $36.61 billion in February, marking a 0.81 per cent decline compared with the same month last year.

Despite the slight drop in monthly exports, Commerce Secretary Rajesh Agrawal said the country’s overall export performance remains stable even amid global challenges.

Imports Surge Over 24 Per Cent​

Imports during February increased significantly, rising 24.11 per cent year-on-year to $63.71 billion, compared with $51.33 billion in the same month a year earlier.

The sharp rise in imports widened the country’s trade deficit to $27.1 billion for the month under review.

FY26 Exports Show Modest Growth So Far​

During the April to February period of FY26, India’s exports rose 1.84 per cent year-on-year to $402.93 billion, reflecting moderate growth during the current financial year.

However, imports during the same period increased 8.53 per cent to $713.53 billion, indicating a faster pace of import growth compared with exports.

March Exports May Face Pressure​

Agrawal indicated that exports in March could witness a downward trend due to logistical disruptions linked to the West Asia crisis.

The crisis began on February 28, following military actions by the United States and Israel against Iran, which have disrupted key global trade routes, particularly in the Strait of Hormuz.

These disruptions are affecting shipping logistics and trade flows, creating challenges for exporters.

India-US Trade Deal Discussions Continue​

On the proposed India-US trade agreement, Agrawal said the formal signing will take place once the new tariff structure is finalised.

“We are currently discussing the details with the US,” he said.

Last month, India and the United States agreed on a framework for a trade deal, marking progress in negotiations between the two countries.