India’s merchandise trade deficit narrowed to $27.1 billion in February, down from $34.68 billion in January, according to data released by the Ministry of Commerce and Industry on Monday.
The reduction in the trade gap comes as imports declined significantly while exports registered a marginal increase during the month.
Exports Rise Slightly in February
India’s merchandise exports increased to $36.61 billion in February, compared with $36.56 billion recorded in January, reflecting steady demand for Indian goods in global markets.
At the same time, imports dropped sharply to $63.71 billion, down from $71.24 billion in the previous month, contributing to the narrowing of the trade deficit.
Exports Show Growth in FY26
Official data shows that India’s merchandise exports during April–February of FY 2025–26 reached $402.93 billion, compared with $395.66 billion in the same period last year.
This represents a year-on-year growth of 1.84 percent, indicating stable export performance despite global economic uncertainties.
Global Tensions Impact Trade Routes
The latest trade figures come amid ongoing geopolitical tensions involving the United States, Israel and Iran, following a conflict that began on February 28.
The conflict has disrupted shipping activity around the Strait of Hormuz, a crucial global energy corridor through which around 20 percent of the world’s oil and gas exports pass.
Disruptions in the strait have also affected India’s exports of certain commodities, including rice shipments to Middle Eastern countries.
India Diversifies Energy Imports
Earlier, nearly 50 percent of India’s energy imports passed through the Strait of Hormuz, but the country has since diversified its energy sourcing strategy.
A significant portion of India’s oil imports now comes from Russia, reducing dependence on a single route.
According to a senior official, India’s strategic petroleum reserves and energy import diversification from around 40 supplier countries have strengthened the country’s ability to handle global energy disruptions.
Shipping and Energy Supplies Remain Stable
According to a statement from the Ministry of Ports, Shipping and Waterways, India is in direct contact with **Iran to ensure safe passage of Indian merchant vessels through the Strait of Hormuz.
An Indian-flagged vessel Jag Ladki safely departed from Fujairah Port carrying around 80,800 metric tonnes of Murban crude oil bound for India. All Indian crew members on board are reported to be safe.
The ministry also confirmed that no incidents involving Indian sailors have been reported in the last 24 hours in the region.
Meanwhile, two Indian-flagged LPG carriers — Shivalik and Nanda Devi — carrying about 92,712 metric tonnes of LPG crossed the Strait of Hormuz on Saturday and are currently on their way to India.
The vessels are expected to reach Mundra Port on Monday and Kandla Port on Tuesday, ensuring continued energy supplies to the country.
