India's trade deficit

Why in news?

• India's merchandise trade deficit fell to a 42-month low of $14.05 billion in February 2025.
• This decline is due to a decrease in imports of gold, silver and crude oil.

According to data from the Ministry of Commerce and Industry-

Trade deficit:

• The merchandise trade deficit stood at $14.05 billion in February 2025.
  • It was $19.5 billion in February 2024.
• The difference between imports and exports was $22.9 billion in January 2025.
• The trade deficit was also much lower than the average of $23 billion during the first 10 months of FY25.

Imports:

• Imports fell 16.3% to a 22-month low of $50.9 billion in February 2025.
• Gold and silver imports: $2.7 billion (lowest since June 2024).
• Crude oil and petroleum imports: $11.89 billion (lowest since July 2023, when it was $11.81 billion).
• India imported services worth $16.55 billion in February 2025.

Exports:

• Exports of goods stood at $36.9 billion in February 2025.
• Exports of services increased from $28.33 billion (February 2024) to $35.03 billion (February 2025).
• Exports declined by 10.84% ​​on an annual basis.

Current Account Surplus:

• A surplus of around $5 billion may be seen in the fourth quarter of FY 2025.
• This would be equivalent to around 0.5% of the gross domestic product (GDP) in the current quarter.