New Delhi, March 18 -- India's merchandise trade deficit contracted significantly to USD 14.05 billion in February, marking its lowest level in three-and-a-half years.

This represents a substantial reduction from the USD 19.52 billion deficit recorded in February 2024, according to data released by the Commerce Department on Monday.

The narrowing deficit resulted from sharp contractions in both exports and imports, influenced by softening global petroleum prices and growing economic uncertainty amid restrictive trade practices implemented by the United States.

Outbound shipments from India fell by 10.9 percent year-on-year to USD 36.91 billion in February, the steepest decline in 20 months.

Commerce officials attributed this partly to...