Merchandise exports shrink to $36.91B; trade deficit moderates to $14B.

India’s merchandise exports fell by 10.9% to $36.91 billion in February, while imports dropped 16.3% to $50.96 billion, easing the trade deficit to $14 billion, as per commerce department data. Despite these challenges, Commerce Secretary Sunil Barthwal expressed optimism about reaching $800 billion in combined exports of goods and services in FY25.

Global trade faces mounting pressures from rising protectionism, geopolitical tensions, and potential trade wars. The United Nations Conference on Trade and Development (Unctad) projected a 3.3% rise in global trade for 2024, driven equally by goods and services. The World Trade Organization (WTO) revised its 2025 global trade growth estimate to 3%, citing risks from regional conflicts and policy uncertainties.

Concerns persist over disruptions from the Red Sea crisis and rising energy costs, which could impact shipping routes and slow economic growth in importing nations, adding further strain to global trade dynamics.

Source: Business Standard