Global geopolitical tensions and logistics disruptions impact trade environment; Exports remain resilent : President, FIEO

According to government data, India’s merchandise exports stood at USD 36.61 billion in February 2026, showing a marginal decline of 0.81% compared to the same month last year. Merchandise imports rose by 24.11% to USD 63.71 billion, resulting in a trade deficit of USD 27.1 billion, which has moderated compared to January 2026. However, overall exports (merchandise and services combined) grew by about 11% year-on-year to USD 76.13 billion, while overall imports increased by about 22% to USD 80.09 billion, reflecting strong services exports and sustained domestic demand.

During April–February FY 2025-26, India’s merchandise exports reached USD 402.93 billion, registering a growth of 1.84%, while imports rose 8.53% to USD 713.53 billion. Cumulative merchandise and services exports during the period are estimated at USD 790.86 billion, compared to USD 747.58 billion last year, reflecting a growth of 5.8%.

Mr Ralhan noted that the escalating conflict in the Middle East involving the United States, Israel and Iran has heightened global trade uncertainty. Disruptions in key maritime routes, including the Strait of Hormuz and the Red Sea have forced vessels to reroute, increasing freight costs, insurance premiums, and transit times, thereby adding pressure on exporters.

Despite these challenges, India’s export sector continues to show resilience, supported by diversified markets and strong performance in key sectors such as engineering goods, petroleum products, electronic goods, pharmaceuticals, gems & jewellery, chemicals, ready-made garments, cotton yarn and fabrics, rice and marine products. Major export destinations continued to include the US, UAE, China, Netherlands, UK, Germany, Saudi Arabia, Bangladesh, Singapore and Hong Kong.

Mr Ralhan emphasized that close monitoring of geopolitical developments, maintaining smooth logistics connectivity and providing timely policy support will be essential to sustain export momentum. He added that continued diversification of markets, strengthening regional trade partnerships and improving logistics efficiency will help India mitigate global disruptions and maintain export growth.