Hormuz tensions hit trade routes; exports slip, trade deficit narrows

New Delhi: India’s merchandise exports dipped marginally in February while the trade deficit narrowed sequentially as imports moderated compared with the previous month, according to data released by the Ministry of Commerce and Industry on Monday.

Exports in February stood at $36.61 billion, registering a slight 0.81 per cent decline year-on-year. Imports, however, rose sharply by 24.11 per cent to $63.71 billion, pushing the trade deficit to $27.1 billion during the month. On a month-on-month basis, the deficit narrowed from $34.68 billion in January, as imports fell from $71.24 billion while exports were almost unchanged.

Commerce Secretary Rajesh Agrawal said exports have remained resilient despite global challenges, though shipments may see a downward trend in March due to logistical disruptions arising from tensions in West Asia. For the April–February period of FY26, India’s merchandise exports grew 1.84 per cent to $402.93 billion, compared with $395.66 billion in the same period last year. Imports during the period increased 8.53 per cent to $713.53 billion.