India's Merchandise Exports Dip 0.81% To USD 36.61 Bn In Feb Amid Global Uncertainty

(MENAFN- KNN India) New Delhi, Mar 17 (KNN) India's merchandise exports were USD 36.61 billion in February 2026, down 0.81 per cent year-on-year (YoY), while imports rose 24.11 per cent to USD 63.71 billion, resulting in a USD 27.1 billion trade deficit.

Overall exports (goods and services) grew 11.05 per cent YoY to USD 76.13 billion and imports rose 21.64 per cent to USD 80.09 billion, resulting in a trade deficit of USD 3.96 billion, supported by strong services exports and steady domestic demand, according to Commerce & Industry Ministry data.

Services exports continued to remain a key driver, rising to USD 39.53 billion from USD 31.65 billion a year ago. Services imports also increased to USD 16.38 billion, resulting in a strong surplus that helped partially offset the merchandise trade gap.

S C Ralhan, President, Federation of Indian Export Organisations (FIEO), said,“The escalating conflict in the Middle East involving the United States, Israel and Iran has heightened global trade uncertainty. Disruptions in key maritime routes, including the Strait of Hormuz and the Red Sea have forced vessels to reroute, increasing freight costs, insurance premiums, and transit times, thereby adding pressure on exporters.”

Cumulative Trade Trends (April–February 2025-26)

During the April–February period, total exports grew 5.79 per cent to USD 790.86 billion, while imports rose 7.37 per cent to USD 900.51 billion. The overall trade deficit widened to USD 109.64 billion.

Merchandise exports stood at USD 402.93 billion, with imports at USD 713.53 billion, resulting in a deficit of USD 310.60 billion. In contrast, services exports reached USD 387.93 billion against imports of USD 186.98 billion, generating a surplus of USD 200.96 billion.

Non-Petroleum Trade Remains Resilient

Non-petroleum exports in February were recorded at USD 33.18 billion, while imports stood at USD 50.74 billion. Exports excluding petroleum and gems & jewellery rose to USD 30.55 billion, indicating steady performance in core sectors.

For the April–February period, such exports reached USD 327.96 billion, while imports stood at USD 454.82 billion.

Sectoral and Market Trends

Export growth was led by sectors such as cereals, coffee, marine products, engineering goods, electronic goods, chemicals, handicrafts and pharmaceuticals. On the import side, declines were observed in project goods, cotton, pulses, transport equipment and chemicals.

Among key markets, exports registered notable growth to China, Hong Kong, Vietnam, Togo and Sri Lanka. Imports saw higher inflows from China, Switzerland, the UK, the US and Peru.

Outlook

While services exports continue to support overall trade performance, rising imports and ongoing global uncertainties, including disruptions linked to the West Asia crisis, may keep pressure on India's trade balance in the near term.

Ralhan emphasised that close monitoring of geopolitical developments, maintaining smooth logistics connectivity and providing timely policy support will be essential to sustain export momentum.

He added,“Continued diversification of markets, strengthening regional trade partnerships and improving logistics efficiency will help India mitigate global disruptions and maintain export growth.”

(KNN Bureau)

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