India's Trade Dynamics: A Surge in Exports and Expanding Deficit in 2026

India's combined exports of merchandise and services witnessed an 11.04% increase, reaching USD 76.13 billion in February 2026 compared to the previous year's USD 68.56 billion. However, according to data from the Commerce Ministry released on Monday, imports grew at a significantly faster rate of 21.61%, escalating to USD 80.09 billion from USD 65.84 billion in February 2025.

This surge in imports widened India's overall trade deficit, encompassing both merchandise and services, to USD 3.96 billion in February 2026 from a deficit of USD 2.72 billion in February of the previous year. Notably, merchandise exports slightly reduced to USD 36.61 billion from USD 36.91 billion, while imports increased from USD 51.33 billion to USD 63.71 billion.

Meanwhile, services exports climbed to USD 39.53 billion, rising markedly from USD 31.65 billion, with services imports also rising to USD 16.38 billion from USD 14.51 billion. The cumulative value of India’s exports for April-February 2026 is estimated at USD 790.86 billion, reflecting a growth of 5.8% from the previous fiscal period. Remarkably, total exports had peaked at USD 824.9 billion in the 2024-25 financial year, surpassing expectations, demonstrating a 6.01% increase over the previous year.