India's Trade Deficit Narrows to $27.1 Billion in February Amid Rising Geopolitical Risks

India's merchandise trade deficit narrowed to $27.1 billion in February 2026, down from $34.68 billion in January, as imports declined from the previous month despite remaining higher than the prior year. Merchandise exports slightly fell to $36.61 billion year-on-year, while imports rose to $63.71 billion, driven by energy, gold, and electronics demand. Services exports remained strong, supporting overall trade growth. However, escalating geopolitical tensions in West Asia, especially around the Strait of Hormuz, pose risks to logistics and trade flows in coming months.