India's trade deficit narrows on month to $27.1 billion in Feb; Tariff uncertainty, Iran conflict loom

India's merchandise trade deficit widened to $27.1 billion in February 2026, driven by increased imports. While overall exports saw a slight rise year-on-year, rising geopolitical tensions in West Asia and tariff disputes are beginning to impact trade flows and exporter sentiment, with potential for further widening of the deficit.