India’s Trade Gap Narrows in February Amid Middle East Crisis

India’s trade deficit narrowed in February even as the war in Iran threatens the outlook for global commerce.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — India’s trade deficit narrowed in February even as the war in Iran threatens the outlook for global commerce.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The gap between exports and imports shrank to $27.1 billion in February from $34.68 billion a month earlier, according to data from the Ministry of Commerce & Industry. That compares with a $25.9 billion deficit forecast by economists in a Bloomberg survey. Exports fell 0.8% to $36.61 billion from a year earlier while imports rose 24.1% to $63.7 billion. The data comes as India faces a rising import bill with crude oil staying above $100 a barrel. The country is also navigating a complex geopolitical situation to meet its energy needs without antagonizing the US, with which it agreed upon a trade deal last month. While tariff relief lifted optimism among exporters, joint US and Israeli strikes on Iran have now clouded the outlook for trade.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.India has been stepping up diplomatic engagement with Iran to ensure that liquefied petroleum gas keeps flowing through the Strait of Hormuz, which has been effectively shut since the strikes on Iran over two weeks ago.

The South Asian nation is the second-largest importer of LPG in the world and is suffering acute shortages of the fuel used in cooking gas and industrial processes.The government is taking steps to protect India’s import-dependent economy from the impact of rising oil prices. It has set up a $6.2 billion economic stabilization fund to deal with external global shocks without impacting fiscal consolidation. Apart from the fund, the government is also discussing support measures for exporters similar to those implemented during the Covid pandemic to help soften the blow of trade disruptions triggered by the Iran war, Bloomberg earlier reported. Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.