India Trade Deficit Narrows to 21 5 Bln in February UBI Report

Merchandise Trade Balance

The merchandise trade balance is a crucial indicator of a country’s economic health. It measures the difference between the value of exports and imports of goods and services. A trade deficit occurs when a country imports more goods and services than it exports, while a trade surplus happens when exports exceed imports.

The merchandise trade deficit for February 2025 was USD 5 billion, down from USD 0 billion in the previous month.

The trade deficit has been narrowing since 2022, when it peaked at USD 8 billion.

The United States has a significant trade deficit, with a deficit of USD 625 billion inImpact on the Economy

A trade deficit can have both positive and negative effects on the economy.

This decrease was largely due to the impact of the ongoing conflict in Ukraine.

Oil imports from Russia decreased by 5% month-on-month to 43 million bpd.

Brent crude oil prices fell by 5% month-on-month to $50 per barrel.

The oil trade deficit narrowed by 3% month-on-month to $2 billion.Impact on the Oil Market

The decline in oil imports from Russia has had a significant impact on the global oil market. With the ongoing conflict in Ukraine, many countries have been forced to reduce their oil imports from Russia, leading to a decrease in global oil demand.

Seasonal Demand and Marriage Season

The marriage season in India is a significant factor in the gold demand. During this time, many Indians purchase gold as a symbol of love and commitment. This surge in demand is not limited to just the wedding season, but also extends to other occasions such as anniversaries and other celebrations. • The marriage season typically starts in October and lasts until February, with the peak demand usually occurring in December. • The demand for gold during this period is driven by the need for jewelry, ornaments, and other gold-based items.