India's trade deficit narrows to $27.1 billion in February
India's trade deficit dropped to $27.1 billion in February 2026, a big improvement from January's $34.68 billion and even better than what experts expected.
This change comes as imports slowed down and exports ticked up slightly, giving the economy a bit of breathing room.
Imports fell by 11% compared with last month
Imports fell by 11% compared with last month, mostly because companies were not stocking up on commodities as much, even though demand for things like electronics stayed strong.
Exports nudged up to $36.61 billion but were slightly lower than last year at this time.
Services exports jumped compared with last year
Services exports jumped compared with last year, helping shrink the overall trade gap for February.
But looking at the bigger picture, India's total deficit since April is still higher than last year; geopolitical tensions near Iran and potential disruptions to import routes for oil and cooking gas could pose additional risks going forward.
Exporters are already feeling the pinch with pricier shipping and insurance, especially when sending goods like rice to West Asia.