India’s trade balance showed encouraging signs in February with the merchandise deficit narrowing to $27.1 billion, down from $34.68 billion in January. Official data from the Commerce Ministry, unveiled Monday, paints a picture of cautious optimism amid turbulent international waters.
Merchandise exports edged higher to $36.61 billion from January’s $36.56 billion. Imports tumbled to $63.71 billion, a welcome decline from $71.24 billion, reflecting prudent adjustments in energy procurement.
Over the first 11 months of FY 2025-26 (April-February), exports totaled $402.93 billion, up 1.84% from last year’s $395.66 billion in the same period. Such growth highlights the export sector’s tenacity.
These numbers arrive as the world grapples with the US-Israel-Iran war that began February 28, choking the Strait of Hormuz. This artery handles 20% of global oil and gas, and its closure has hampered shipments including rice to India from the region.
Shifting gears, India’s energy imports have diversified beyond the Strait, which once supplied half of its needs. Russia now plays a pivotal role, complemented by reserves and ties with 40 nations, enhancing crisis resilience.
Government efforts in supply chain management have prevented any energy crunch at home, even as conflicts rage. A top official credited strategic stockpiles and broad sourcing for this stability.
In a related development, India’s Shipping Ministry is engaging Iran directly for safe passage of its ships. The Jag Ladki, loaded with 80,800 MT of Murban crude from Fujairah, set sail Sunday unscathed. Indian sailors remain safe, with zero incidents in the past day.
LPG tankers Shivalik and Nanda Devi, with 92,712 MT cargo, cleared the Strait Saturday. They’re bound for Mundra (Monday arrival) and Kandla (Tuesday), ensuring uninterrupted supply lines.
As tensions simmer in the Middle East, India’s blend of diversification, reserves, and diplomatic outreach exemplifies a robust framework for sustaining trade flows in an era of uncertainty.