New Delhi, March 16 -- India's merchandise trade deficit narrowed in February as imports moderated from the previous month, though elevated purchases of energy, gold and electronics continued to weigh on the overall trade balance, even as geopolitical tensions in West Asia pushed up freight costs and added uncertainty to global trade flows.

The gap between imports and exports stood at $27.1 billion in February, compared with a deficit of $14.42 billion in February 2025, according to provisional estimates released by the ministry of commerce and industry on Monday.

The February deficit is lower than the $34.68 billion recorded in January, when a sharp rise in imports widened the trade gap to the highest level in several months.

Merchand...