New Delhi, March 12 -- India's trade deficit likely narrowed to USD 21.5 billion in February, down from USD 23 billion in January, according to a report by Union Bank of India.

However, the report also noted that the geopolitical risks, especially concerns over tariffs, will continue to influence trade dynamics.

It said "Merchandise trade deficit likely narrowed in Feb'25 to USD 21.5 bln vis-a-vis USD 23.0 bln a month ago".

The report suggested that the reduction in the merchandise trade deficit was mainly driven by a moderation in the Non-Oil-Non-Gold (NONG) segment, supported by seasonal factors during the quarter.

Despite this improvement, the report added that the extent of recovery in trade balance may be limited due to growing c...