Trade Deficit Widens to $20.67 Billion

India’s merchandise exports declined by 7.44% in March, standing at $38.92 billion, while imports also fell by 6.51% to $59.59 billion compared to $63.75 billion last year. The decline has been attributed to disruptions in key trade routes such as the Strait of Hormuz amid escalating West Asia tensions. As a result, the country’s trade deficit for March widened to $20.67 billion.

Despite monthly fluctuations, India’s overall goods and services exports in FY 2025–26 grew by 4.22% to $860 billion. Goods exports rose marginally to $441.78 billion, while imports increased to $774.98 billion. Services exports were estimated at $418.31 billion. Crude oil imports fell by 35.91% in March, while gold imports declined by 31.63%. Officials noted that exports to West Asian countries dropped sharply due to conflicts involving Iran, the United States, and Israel, though exports to other regions remained stable.