India’s exports declined for the fourth month in a row in February to $36.91 billion due to volatility in petroleum prices and global uncertainties, even as the country’s trade deficit narrowed sharply.
Photograph: Amit Dave/Reuters
The country’s exports stood at $41.41 billion in the same month a year ago.
The trade deficit in February narrowed to $14.05 billion as the country’s imports reduced to $50.96 billion in February, as against $60.92 billion a year ago, data released by the commerce ministry showed.
Asked about the trade deficit, estimated at its lowest level since August 2021, an official said, “These are quick estimates. We are looking into the details of (the) fall in imports.”
Factors, including the high-base effect in February 2024 and change in petroleum prices and precious metals, may be behind the $10-billion fall in imports from February 2024 to February 2025, the official said.
Aditi Nayar, chief economist and head – research & outreach, ICRA Ltd, said, “India’s merchandise trade deficit compressed to a 42-month low $14.1 billion in February 2025 from $19.5 billion in February 2024, largely explained by a compression in imports of crude oil, gold and silver.
“A portion of the YoY decline in merchandise exports can be attributed to the base year effect related to the leap month.”
She said the trade deficit was also significantly lower than the average of over $23 billion during the first 10 months of FY25.
Cumulatively, during April-February this fiscal year, the merchandise and services exports rose 6.24 per cent to $750.53 billion as against $706.43 billion for the same period last fiscal year.
Non-petroleum and non-gems & jewellery exports in February 2025 were $28.57 billion compared to $29.99 billion in February 2024.
Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in February 2025 were $35.02 billion compared to $33.96 billion in February 2024.
Top five export destinations, in terms of change in value, exhibiting positive growth in April-February 2024-25 are the US (9.1 per cent), the UAE (5.19 per cent), the UK (12.47 per cent), Japan (21.67 per cent), and the Netherlands (3.68 per cent).
India’s merchandise shipments witnessed a decline in value terms between November and February.
Merchandise exports were $36.43 billion in January compared to $37.32 billion a year ago.
In December, it stood at $38.01 billion against $38.39 billion in December 2023, while its outward shipments declined to $32.11 billion in November 2024 from $33.75 billion in the year-ago month.
