--- source: Ministry of Commerce and Industry, India (via Times of India) url: https://timesofindia.indiatimes.com/business/india-business/trade-deficit-for-february-widens-to-3-96-billion-indias-exports-climb-11-imports-surge-21/articleshow/129604688.cms official_source_url: https://commerce.gov.in/ document_type: news release / economic statistics date_retrieved: 2026-03-16 period: February 2026 parent_publication: India Trade Statistics indicators_covered: [Balance of Trade, Exports, Imports, Merchandise Trade] --- # India Trade Statistics — February 2026 ## Overview India's trade position in February 2026 shows a widening trade deficit driven by surging imports, with combined merchandise and services figures revealing continued growth in both exports and import volumes but an imbalance that shifted the overall trade position negative. ## Combined Merchandise and Services **Exports reached $76.13 billion in February 2026**, marking an **11.04% increase** from $68.56 billion in February 2025. This growth reflects expanding export capabilities across multiple sectors. **Imports surged more sharply, rising 21.61% to $80.09 billion** from $65.84 billion a year earlier, representing a significantly faster growth rate than exports and creating the overall trade pressure. **Overall trade deficit widened to $3.96 billion for February**, compared with a deficit of $2.72 billion in the same month last year — an increase of $1.24 billion year-on-year. ## Merchandise Trade Detail ### Exports Merchandise exports in February reached **$36.61 billion**, down slightly from $36.91 billion in February 2025 — a decline of approximately 0.8%. This marginal decrease masks underlying structural changes: - **Engineering goods** showed strength with double-digit growth - **Electronic goods** contributed positively to offset declines in other categories - **Non-petroleum exports** contributed significantly to the export base ### Imports Merchandise imports surged to **$63.71 billion** in February, up sharply from $51.33 billion in February 2025 — a **24% increase** driven by: - **Gold imports**: Surged 28.7%, reflecting continued strong precious metals demand - **Silver imports**: Jumped 143%, the largest percentage increase among major import categories - **Electronic equipment**: Rose 17.6%, indicating continued technology sector import intensity - **Crude oil imports**: Declined 3%, providing some offset to overall import growth ### Merchandise Trade Balance The merchandise trade deficit reached **-$27.10 billion** (calculated as Exports $36.61B minus Imports $63.71B), a sharp widening from **-$14.42 billion** in February 2025 — nearly doubling year-on-year. This represents a monthly worsening of $12.68 billion in the deficit position, though the deficit did narrow from the previous month (January 2026: -$34.7 billion), indicating some month-to-month volatility. ## Services Trade Services exports expanded substantially to **$39.53 billion** from $31.65 billion, up **24.8%**. Services remain a key strength for India's external account, with India's IT and business services driving gains. Services imports increased to **$16.38 billion** from $14.51 billion, up 12.8%. **Net services surplus: $23.15 billion**, providing critical offset to the merchandise deficit. ## Cumulative Fiscal Year Performance (April 2025–February 2026) Over the April 2025 to February 2026 period: - **Total exports**: $790.86 billion (+5.79% year-on-year) - **Merchandise exports**: $402.93 billion (+1.84%) - **Services exports**: $387.93 billion (up from $351.93 billion) - **Total imports**: ~$793.82 billion - **Services surplus cumulative**: $200.96 billion ## Key Observations **Import surge intensity**: The 21.6% year-on-year growth in total imports, particularly driven by gold (+28.7%), silver (+143%), and electronics (+17.6%), reflects both strong domestic demand and global commodity price movements. **Merchandise export weakness**: The slight decline in merchandise exports year-on-year (-0.8%) despite nominal growth in absolute terms suggests pricing pressure or volume headwinds in traditional export categories, offset partially by engineering and electronics gains. **Services strength**: Services exports growth (+24.8% YoY) demonstrates India's continuing competitive advantage in IT services, business services, and professional services — a structural positive for the external account. **Deficit sustainability**: The widened monthly deficit of $27.1 billion in merchandise trade is partially offset by the $23.15 billion services surplus, resulting in the lower combined deficit of $3.96 billion. Without services, the external position would face greater pressure. ## Import Components (February 2026) | Category | Value (USD Billion) | YoY Change | |----------|---------------------|------------| | Gold | High surge | +28.7% | | Silver | Significant | +143.0% | | Electronics | $4.2B range | +17.6% | | Crude Oil | Decline | -3.0% | | **Total Imports** | **$63.71** | **+24.0%** | ## Export Performance Notes Major export categories contributing to the $36.61 billion merchandise export total include: - Engineering goods with double-digit growth - Electronic goods at ~$4.2 billion (up 10% YoY) - Non-petroleum products representing a significant share of the export base - Organic and inorganic chemicals contributing positively - Gems and jewellery (up 4.08% to $2.64 billion) ## Context and Outlook The widening merchandise trade deficit reflects a global trend of strong import demand in emerging markets, combined with commodity price pressures (particularly precious metals). India's services surplus provides a critical counterbalance, maintaining an overall manageable trade deficit when both flows are considered. Geopolitical developments affecting shipping routes (notably the Strait of Hormuz disruptions referenced in broader coverage) represent tail risks to the near-term trade balance, with potential impacts on both import costs and export logistics. --- **Document Source**: Times of India, March 16, 2026 · **Official Release**: Ministry of Commerce and Industry, Government of India · **Data Reference Date**: February 28, 2026