New Delhi: In a significant development, India’s trade deficit narrowed to $14.05 billion in February 2025, marking a substantial reduction from January’s $22.9 billion. This shift occurred as imports fell to $50.96 billion, driven by decreases in petroleum and gold imports. Despite this improvement, India’s exports continued their downward trend, reaching $36.91 billion in February, a decline from the same period last year when exports were valued at $41.41 billion.
The decline in exports is attributed to volatility in petroleum prices and broader global uncertainties. However, the cumulative exports for the April-February period in the current fiscal year showed a 6.24% increase to $750.53 billion compared to $706.43 billion in the previous year. This growth reflects a mixed performance, with merchandise exports experiencing a decline over the past few months. In the period from November to February, merchandise exports saw a consistent decrease, with values dropping from $33.75 billion in November 2023 to $32.11 billion in November 2024.
The reduction in imports played a crucial role in narrowing the trade deficit. Petroleum imports decreased to $11.8 billion, while gold imports fell to $2.3 billion. These changes are part of a broader trend of import contraction, which has helped stabilize India’s trade balance despite ongoing global challenges.
