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India's trade deficit narrows to $27.1 billion in February ahead of Mideast crisis

India's trade deficit narrows to $27.1 billion in February ahead of Mideast crisis

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NEW DELHI, Mar 16 (Reuters) - India’s merchandise trade deficit narrowed to $27.1 billion in February from the ‌previous month, data released on Monday showed, ‌with economists warning that shipments face risks from the escalating crisis ​around the Strait of Hormuz.
Economists had expected the February trade deficit to be $28.8 billion, according to a Reuters poll, compared to a deficit of $34.68 billion in the ‌previous month.
India's merchandise exports ⁠marginally rose to $36.61 billion from $36.56 billion in January, while imports fell to $63.71 billion from $71.24 ⁠billion, data released by the commerce ministry showed.
The data comes as a prolonged war in the Middle East ​has heightened ​uncertainty over India’s energy ​security and trade.
An effective ‌blockade of the Strait of Hormuz, a key route for global oil and gas, has disrupted shipments, including those of liquefied natural gas, and could affect India’s broader trade with the region.
India, the world's No. ‌3 oil consumer, imports more ​than 80% of its crude oil ​needs and 60% ​of its cooking gas, with the Middle ‌East accounting for a large ​chunk of ​the supply.
Exports of goods including rice destined for the major Middle Eastern markets, including Iran, Iraq, ​Qatar and Saudi ‌Arabia, have been hit due to blocking of ​the key waterway, exporters said.
(Reporting by Shivangi ​Acharya; Editing by Mrigank Dhaniwala)
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AI Description

The article discusses India's narrowing trade deficit in February, highlighting economic resilience amid global tensions. It underscores potential risks to shipments due to geopolitical issues.