February trade deficit narrows to $14.05 bn, lowest since August 2021

New Delhi: India’s trade deficit narrowed to three-and-a-half year low of $14.05 billion in February 2025, down from $23 billion recorded in January, as imports fell sharply while exports remained steady, data released by the Ministry of Commerce and Industry showed on Monday.

Merchandise exports increased marginally from $36.43 billion in January to $36.91 billion in February, while imports fell sharply from $59.42 billion to $50.96 billion. There was a sharp decline in imports of gold and petroleum products.

The February trade deficit was the lowest since August 2021, Additional Secretary, Department of Commerce, L Satya Srinivas said at a media briefing.

On a year-on-year basis there was a sharp decline in the country’s imports as well as exports during the month of February.

The country’s exports fell from $41.41 billion in February 2024 to $36.91 billion in February 2025, a decline of 10.86%. Imports fell at a sharper pace of 16.34% year-on-year to $50.96 billion.

Addressing the briefing, Commerce secretary Sunil Barthwal said the financial year 2024-25 has been difficult. However, he expressed hope that the country’s overall exports, merchandise and services put together, would cross the $800 billion mark for the year.

India’s cumulative exports (merchandise and services) during April-February 2024-25 stood at $750.53 billion, which is 6.24% higher when compared with the same period last year.

On the impact of US tariffs on India’s exports, Barthwal said the Indian government is engaging with stakeholders to deal with the challenges.

“The government is weighing both opportunities and challenges emerging from US tariffs. We are conducting stakeholder consultations on these issues and will resolve them on a bilateral basis,” he said.

Federation of Indian Export Organisations (FIEO) President Ashwani Kumar said the near 11% year-on-year decline in exports during the month of February is primarily due to subdued global demand and ongoing challenges faced by key export sectors including the impact of the global tariff war.

“While exports have faced challenges, particularly due to the global tariff war, the sharp decline in imports signals a reduction in demand for foreign goods, presenting opportunities for domestic industries to grow,” Kumar said.

Major drivers of merchandise exports growth in February include electronic goods, rice, mica, coal & other ores, minerals including processed minerals and ready-made garments.

After recording positive growth for nine straight months, engineering goods exports registered a dip in February 2025, slipping 8.6% year-on-year to $9.08 billion.

Chairman of engineering export promotion body EEPC India Pankaj Chadha said the US trade policy has negatively impacted global trade. “The move has already resulted in many countries taking a protectionist approach towards trade. All indications suggest that the US could further harden its

stand on tariffs which will affect the world adversely,”

Chadha added.