According to a PTI report, India’s merchandise trade deficit shrank to $27.1 billion in February from $34.68 billion in January. In January, merchandise exports increased slightly to $36.61 billion from $36.56 billion, while imports decreased to $63.71 billion from $71.24 billion. India’s exports increased by 1.8% to $402.93 billion between April and February of this fiscal year.
The February data was released at a time when shipments were at risk due to ongoing unrest in the Middle East. Trade routes, especially in the Strait of Hormuz, have been severely disrupted since the US and Israel launched military operations against Iran on February 28.
India’s exports increased slightly by 0.61% to $36.56 billion in January. In January, imports reached a three-month high of $71.24 billion, up 19.2%—the largest amount so far in FY26—driven by a substantial increase in incoming shipments of gold and silver as a result of rising prices. The trade gap grew to $34.68 billion, a three-month record.
Silver imports increased by 127% to $2 billion during the reviewed month, while gold imports increased by 349.22% to $12 billion. India mostly imports the yellow gold from Switzerland, where inbound shipments increased by 836.85% to $3.95 billion in January.
The nation’s exports increased by 2.22% to $366.63 billion between April and January of FY26. During the nine months of 2025–2026, imports increased by 7.21% to $649.86 billion, resulting in a $283.23 billion trade imbalance. Between April and January of 2024–2025, the difference was $247.38 billion.
The expected total exports from April to January of the current fiscal year are $720.76 billion, compared to $679.02 billion over the same time in the previous fiscal year.
