India’s Trade Deficit Widens to $27.1 Billion in February as Imports Surge

India’s trade deficit has been widened to $27.1 billion in February 2026. The reason for this is as imports rise sharply while exports saw a slight decline. According to data released by the Commerce Department of India, India exported goods worth $36.61 billion during the month. And it registering a 0.81% contraction compared with the previous year. Meanwhile imports increased by 24% to $63.71 billion which is the mainly driven by higher purchases of gold and silver.

India Trade Deficit February 2026

The India trade deficit in February 2026 has expanded significantly compared with the same month last year.

This deficit has stood at $27.1 billion and it nearly doubling from $14 billion recorded in February of the previous year.

This trade deficit occurs when a country’s imports exceed its exports and it leading to a negative trade balance.

Imports Surge to $63.71 Billion in February

One of the main and key reasons behind the increase in India’s trade deficit was the sharp rise in imports.

According to official trade data released the imports grew by 24% to $63.71 billion in February 2026.

This increase was largely driven by higher purchases of gold and silver.

Exports Slightly Decline Amid Global Challenges

India’s exports in February 2026 stood at $36.61 billion.

And this is showing a 0.81% contraction compared to the same period last year.

The decline reflects ongoing challenges in global trade conditions.

West Asia Crisis and Logistics Bottlenecks Impact Trade

Officials have highlights that geopolitical developments in West Asia are affecting India’s trade environment.

This situation in the region has created disruptions in global shipping routes and increased logistics costs.

In particular the crisis which is the impacting movement through the Strait of Hormuz.

And it is one of the world’s most important maritime trade routes, has slowed the flow of goods and increased transportation expenses.

Question

Q. What was India’s merchandise trade deficit in February 2026?

A. $14 billion
B. $21.5 billion
C. $27.1 billion
D. $30 billion