India's trade deficit, the difference between imports and exports, dropped significantly to $14.05 billion in February 2025, the lowest in 42 months.
This decrease is mainly due to lower imports of gold, silver, and crude oil.
India exported $36.9 billion worth of goods and imported $50.9 billion.
Compared to last year, exports decreased by about 10.84%, and imports decreased by 16.3%.
The decrease in exports was partially due to the base year effect because of the leap month.
This lower trade deficit suggests India's current account might see a surplus in the last quarter of the fiscal year.
India also had a surplus in services trade, with exports exceeding imports.
This data is important given the current weakening of the Indian currency and uncertainties in U.S. trade policy.
COMMENTS