India’s Trade Deficit Narrows to $27.1 Billion in February Amid Import Slowdown
India’s merchandise trade deficit narrowed to $27.1 billion in February, down from $34.68 billion in January, as imports declined, according to data released by the Commerce Ministry. Merchandise exports edged up slightly to $36.61 billion, compared with $36.56 billion the previous month, while imports fell significantly to $63.71 billion from $71.24 billion, helping reduce the trade gap.
Despite the improvement, officials warned that the escalating West Asia crisis could disrupt shipments and raise costs for the energy-importing country. India’s Trade Secretary Rajesh Agrawal said logistical challenges caused by regional tensions have already affected exports to the Middle East, a market worth around $100 billion annually for India. Disruptions linked to the blockade of the Strait of Hormuz have impacted shipments of key commodities including liquefied natural gas, rice and fertilisers.
Meanwhile, India is taking steps to safeguard its energy security and trade stability. The government has increased purchases of Russian oil after the United States temporarily eased sanctions, while also considering measures to support exporters affected by the crisis. Although a recent U.S. Supreme Court ruling eased tariffs benefiting Indian exports such as textiles, jewellery and food products, officials remain cautious as new U.S. trade investigations into industrial capacity could pose fresh challenges for India’s export sector in the coming months.
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