India's February goods trade saw a significant drop in both exports and imports.
Exports fell by 10.9%, imports by 16.3%.
The trade deficit reached a 42-month low of $14 billion.
The simultaneous decline in exports and imports is a cause for concern.
The narrowing deficit is partly due to a high base effect from the previous year.
US trade tensions, including potential tariffs, are impacting export orders.
Gold imports decreased sharply due to rising domestic prices.
Oil imports fell as India diversified its supply sources.
A reduction in the US trade deficit could significantly widen India's overall deficit.
India needs to diversify its trade to reduce reliance on the US.
China and the UK are potential markets for diversification.
India is negotiating a free trade agreement with the UK to improve trade balance.
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