India Trade Deficit Widens in February

2026-03-16 08:38 By Kyrie Dichosa 1 min. read

India’s merchandise trade deficit widened to $27.10 billion in February 2026, nearly doubling from $14.42 billion a year earlier but slightly below market expectations of $28.0 billion.

Imports jumped 24% year-on-year to $63.71 billion, driven by purchases of gold and silver, while exports fell 0.8% to $36.61 billion.

In late February, the US imposed a temporary 10% tariff on Indian goods alongside standard MFN rates, following a Supreme Court ruling that struck down earlier higher tariffs.

The widening deficit also reflects rising freight costs and supply disruptions in West Asia.

Exporters in sectors such as apparel and manufacturing have begun adjusting shipment schedules and exploring alternative routes to manage higher logistics costs and longer shipping times.

While the latest data does not yet capture the full impact of geopolitical tensions in the Gulf, rising insurance premiums and shipping disruptions are expected to influence trade flows in the coming months.



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India Trade Deficit Widens in February
India’s merchandise trade deficit widened to $27.10 billion in February 2026, nearly doubling from $14.42 billion a year earlier but slightly below market expectations of $28.0 billion. Imports jumped 24% year-on-year to $63.71 billion, driven by purchases of gold and silver, while exports fell 0.8% to $36.61 billion. In late February, the US imposed a temporary 10% tariff on Indian goods alongside standard MFN rates, following a Supreme Court ruling that struck down earlier higher tariffs. The widening deficit also reflects rising freight costs and supply disruptions in West Asia. Exporters in sectors such as apparel and manufacturing have begun adjusting shipment schedules and exploring alternative routes to manage higher logistics costs and longer shipping times. While the latest data does not yet capture the full impact of geopolitical tensions in the Gulf, rising insurance premiums and shipping disruptions are expected to influence trade flows in the coming months.
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