W Asia crisis: India's exports plunge 7.44% in March; trade gap narrows

Exports posted the steepest fall in five months, declining by 7.44 per cent in March to USD 38.92 billion, while imports fell by over 6 per cent due to the West Asia crisis, official data released on Wednesday showed..

The trade deficit, however, narrowed to a nine-month low of USD 20.67 billion in March due to lower imports.

Imports dipped by 6.51 per cent to USD 59.59 billion in March, driven by a significant decline in inbound shipments of crude oil and gold, the data showed.

For the full 2025-26 fiscal year, exports grew 0.93 per cent to an all-time high of USD 441.78 billion, while imports rose 7.45 per cent to USD 775 billion. The trade deficit ballooned to USD 333.2 billion due to a jump in gold and silver imports during the last fiscal.

Commerce Secretary Rajesh Agrawal told reporters that the country's goods and services exports increased by an estimated 4.22 per cent to an all-time high of USD 860.09 billion in 2025-26 against USD 825.26 billion in 2024-25.

He said that despite global challenges, Indian exporters are showing resilience and are registering positive growth.

The secretary said that India's exports to the Middle East region fell 57.95 per cent in March.

India exports goods worth USD 6 billion to the Middle East in a month. However, supply disruptions due to the war involving the US, Israel and Iran, which began on February 28, led to outbound shipments declining to about USD 2-2.5 billion, driven by a fall in shipments of gems and jewellery, rice, engineering goods, petroleum products and electronic items.

Imports from the region fell 57.95 per cent in March.

"Our exports to the Middle East in March dipped by 3.5 billion dollars (USD) and it has impacted exports," Agrawal told reporters.

Agrawal said that April could also be a tough month for exports due to the conflict, which is hampering ship movements in international waters.

In March, the trade deficit narrowed to a nine-month low of USD 20.67 billion.

Crude oil imports in March dipped 35.91 per cent to USD 12.18 billion, while in 2025-26, it declined 6.37 per cent to USD 174 billion.

Gold imports in March dipped 31.63 per cent to USD 3.06 billion, while in 2025-26, these rose by 24 per cent to USD 71.97 billion.

The war in the Middle East region has disrupted the movement of oil and gas through the Strait of Hormuz, which has pushed up the freight and insurance costs for exporters.

"We hope the challenges that we face today will not sustain for long, and we may have smoother trades across the world in months to come," the secretary said.

Services exports, the secretary said, have remained robust.

As per estimates, services exports in March slipped to USD 35.20 billion as compared to USD 35.63 billion in March 2025. Imports also declined to USD 16.96 billion as compared to USD 17.48 billion in March last year.

The estimated value of service exports during 2025-26 is USD 418.31 billion, up from USD 387.55 billion in 2024-25. Imports during the last fiscal year were estimated at USD 204.42 billion, up from USD 198.72 billion in 2024-25.