India Balance of Trade

India recorded a trade deficit of $14.05 billion in February of 2025, narrowing from the $18.7 billion deficit of the corresponding period of the previous year to mark the lowest gap since August 2021 amid a sharp decline in imports. Purchases of foreign goods sank by 16.3% annually to $50.96 billion in the period amid a pullback in energy prices, as the nation imports around 90% of the oil and fuel it uses. In the meantime, exports dropped by a slightly softer 10.9% annually to $36.91 billion, dented by the softening industrial output domestically and the relative strength of the rupee compared to currencies from key trading partners due to the RBI's forex interventions.