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India's Trade Deficit Widens Despite 11% Export Growth in February

India's combined merchandise and services exports grew by 11.04% year-on-year in February 2026. However, imports grew at a much faster rate of 21.61%, leading to a widening of the overall trade deficit to $3.96 billion. While merchandise exports saw a slight dip, services exports provided a significant boost. For the April-February period of the fiscal year, cumulative exports are estimated at $790.86 billion, showing a growth of 5.8%.

Key Points: India's Trade Deficit Widens as Imports Outpace Exports

  • Exports rose 11% to $76.13B
  • Imports surged 21% to $80.09B
  • Trade deficit at $3.96B
  • Merchandise exports saw marginal decline
  • Services exports grew robustly
2 min read

Despite 11% rise in exports, trade deficit widens in February; imports up 21%

India's overall exports rose 11% in Feb 2026, but a 21% surge in imports widened the trade deficit to $3.96 billion. Get the key data.

Despite 11% rise in exports, trade deficit widens in February; imports up 21%
"India's overall trade deficit... widened to USD 3.96 billion in February 2026 - Commerce Ministry Data"

New Delhi, March 16

India's overall exports, merchandise and services combined, increased by 11.04 per cent year-on-year to USD 76.13 billion in February 2026, compared with USD 68.56 billion in February 2025, according to data released by the Commerce Ministry on Monday.

However, overall imports during the month grew at a faster pace of 21.61 per cent, rising to USD 80.09 billion from USD 65.84 billion in February 2025, the ministry data showed.

As a result, India's overall trade deficit, merchandise and services combined, widened to USD 3.96 billion in February 2026, from (-) USD 2.72 billion in the corresponding month last year.

Merchandise exports in February declined marginally to USD 36.61 billion from USD 36.91 billion. Merchandise imports increased from USD 51.33 billion to USD 63.71 billion.

Services exports rose to USD 39.53 billion from USD 31.65 billion. Services imports rose to USD 16.38 billion from USD 14.51 billion.

Overall trade growth for the fiscal year (April-February), the cumulative value of overall exports, including both merchandise and services, is estimated at USD 790.86 billion as compared to USD 747.58 billion in corresponding period during the last financial year.

It is an estimated growth of 5.8 per cent and increased around approximately USD 42-43 billion.

India's total exports had touched an all-time high of USD 824.9 billion in financial year 2024-25. This marked a yearly growth of 6.01 per cent over USD 778.1 billion exports in 2023-24, setting a new annual milestone. The 2024-25 exports exceeded the initial anticipation of USD 800 billion.

- ANI

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Reader Comments

P
Priya S
The services export number is fantastic! ₹39.53 billion is a huge jump. It shows our IT and professional services sector is really strong and can be a major growth engine. We should invest more in skilling our youth for these high-value jobs.
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Aman W
Merchandise exports actually declined? That's not a good sign. It means our goods are becoming less competitive globally, or global demand is slowing. We need to look at why our 'Made in India' products aren't selling as well. Maybe quality or pricing issues?
S
Sarah B
As someone who follows economics, a trade deficit isn't always bad if the imports are capital goods and technology that boost future productivity. But we need to see the import breakdown. Is it oil, gold, electronics, or machinery? The composition matters more than the headline number.
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Vikram M
Overall yearly exports are still up, which is positive. One month's data can be volatile due to many factors. Let's not panic. The focus should be on the long-term trend, and crossing $800 billion last year was a big achievement. Jai Hind!
K
Kavya N
High imports might also mean domestic demand is strong, which is good for the economy. People and businesses are buying more. But yes, we need to ensure this demand is met by local products eventually. Time for our startups and MSMEs to step up! 💪

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