India’s trade deficit narrows to $14.05 bn in Feb, lowest in over 3 years

India’s trade deficit narrowed to $14.05 billion in February 2025, a sharp decline from $22.9 billion in January 2025. The trade deficit narrowed to over three years low, primarily due to a drop in imports. Merchandise exports rose slightly to $36.91 billion in February from $36.43 billion in January, while imports fell to $50.96 billion from $59.42 billion during the same period, according to the data accessed by Reuters.

In the services sector, exports declined to $35.03 billion from $38.55 billion in February 2024, while services imports stood at $16.55 billion, down from $18.22 billion in January. Gold imports fell to $2.3 billion in February from $2.68 billion in the previous month, while crude oil imports dipped to $11.8 billion from $13.4 billion in January.

​In January 2025, India's merchandise trade deficit was recorded at $22.99 billion. Combining merchandise and services, the overall trade deficit came in at $2.67 billion.

Non-petroleum and non-gems & jewellery exports saw a 14.33% rise, increasing from $26.12 billion in January 2024 to $29.87 billion in January 2025. The major drivers of merchandise export growth in January 2025 included electronic goods, engineering goods, drugs & pharmaceuticals, rice, and gems & jewellery.

Electronic goods exports surged 78.97%, rising from $2.29 billion in January 2024 to $4.11 billion in January 2025. Engineering goods exports grew by 7.44%, reaching $9.42 billion from $8.77 billion in January 2024. Drugs & pharmaceuticals exports increased 21.46%, climbing from $2.13 billion in January 2024 to $2.59 billion in January 2025. Rice exports saw a 44.61% jump, rising from $0.95 billion in January 2024 to $1.37 billion in January 2025. Gems & jewellery exports grew 15.95%, increasing from $2.59 billion in January 2024 to $3 billion in January 2025.

During April-January 2024-25, India’s total exports were estimated at $682.59 billion, registering a positive growth of 7.21%. Total imports during April-January 2024-25 were estimated at $770.06 billion, a growth of 8.96%. The overall trade balance during the period has been recorded at $87.47 billion.

The cumulative value of merchandise exports during April-January 2024-25 was $358.91 billion, as compared to $353.97 billion during April-January 2023-24, registering a positive growth of 1.39%. The non-petroleum exports in January 2025 were valued at $32.86 billion, an increase of 14.47% vs $28.71 billion in January 2024.

The cumulative non-petroleum exports in April–January 2024–25, valued at $305.84 billion, registered an increase of 7.90% compared to $283.45 billion in April–January 2023–24.