FX.co ★ India’s Trade Deficit Narrows in February 2026 to $27.10B

India’s trade deficit narrowed in February 2026, with the gap in the country’s trade balance shrinking to -$27.10 billion from -$34.68 billion recorded in January 2026. The latest figures, updated on 16 March 2026, indicate a notable month-on-month improvement in India’s external trade position.

While the trade balance remains firmly in negative territory, the reduced deficit suggests some easing of pressures on the country’s external accounts compared with the previous month. The shift from January to February points to either relatively stronger export performance, softer import demand, or a combination of both, though the underlying drivers are not detailed in the released data.

The February 2026 reading will be closely watched by market participants and policymakers as they assess the trajectory of India’s trade dynamics and its implications for growth, currency stability, and the broader balance of payments in the months ahead.