MPC Meeting Outcome: RBI flags growing trade imbalance as merchandise deficit hits early 2026 high

In the policy announcement, Malhotra informed that India’s merchandise exports contracted marginally by 0.2 per cent on a year-on-year basis during the first two months of the year, while imports recorded a double-digit increase of more than 22 per cent, largely driven by a spike in gold imports, significantly widening the trade deficit.