India’s goods exports declined a marginal 0.81 per cent (year-on-year) in February 2026 to $36.61 billion amid continued global uncertainties, but March is set to pose an even greater challenge due to the West Asia crisis and logistical bottlenecks, according to the Commerce Department.

Imports increased 24.11 per cent to $63.71 billion in February 2026 which resulted in widening of trade deficit to $27.1 billion, almost double of $14 billion in February 2025. Trade deficit was lower than $34.68 billion in January 2026, according to the Commerce Department data.

Despite the increased geo-political turmoil following the US-Israel attack on Iran in February-end, the government is hopeful that annual exports of goods will remain in the positive territory in FY26 with efforts on to help exporters deal with the West Asia crisis and also increase exports in other parts of the world, Commerce Secretary Rajesh Agrawal said.