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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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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.