India’s exports dip marginally to $36.61 billion in February; imports jump 24%

India’s merchandise exports slipped marginally in February while imports registered a sharp surge. Exports declined 0.81% year-on-year to $36.61 billion, compared with $36.91 billion in the same month last year. 

Imports, however, rose 24.11% to $63.71 billion during the month, up from $51.33 billion a year earlier, according to provisional government data released on Monday. 

As a result, the trade deficit, which represents the gap between imports and exports, stood at $27.1 billion in February. 

On a month-on-month basis, the trade deficit narrowed from $34.68 billion recorded in January, indicating some easing in the imbalance despite the strong growth in imports. 

Imports remain elevated 

The sharp rise in imports reflects continued domestic demand as well as higher inbound shipments of commodities and precious metals.

Economists have noted that strong imports often signal robust economic activity, though it also widens the trade gap when export growth remains subdued. 

In January, India’s merchandise exports had grown marginally by 0.61% to $36.56 billion while imports had jumped 19.2% to $71.24 billion, driven largely by higher purchases of gold and silver. The surge in imports had pushed the trade deficit to a three-month high of $34.68 billion. 

Global uncertainty weighs on trade 

India’s export performance has been facing headwinds from slowing global demand and geopolitical uncertainties affecting global supply chains. 

Recent tensions in West Asia, including disruptions around the Strait of Hormuz, have added fresh concerns for global trade and energy shipments. India, which imports over 80% of its crude oil requirement, remains particularly vulnerable to disruptions in the region. Despite the volatility in merchandise trade, services exports continue to provide support to India’s overall external sector. In January, services exports were estimated at $43.9 billion, significantly higher than merchandise exports of $36.56 billion during the same month.  

Cumulative trade trends 

For the current fiscal year so far, exports have shown modest growth, though imports have increased at a faster pace due to strong domestic demand and higher commodity purchases. 

Between April and January of FY26, India’s total exports (including merchandise and services) were estimated at about $720.76 billion, reflecting growth of around 6.15% compared with the same period last year. Imports during the period rose about 6.54% to $823.41 billion.