India exports fall 7.4% in March, FY26 shipments rise 4.2% as trade deficit widens
India’s merchandise exports declined 7.44% in March even as imports fell, narrowing the monthly trade deficit to $20.67 billion. However, for FY2025-26, total exports rose 4.22% to $860 billion, while faster import growth widened the annual trade deficit to $119.30 billion.
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India’s merchandise exports contracted by 7.44% year-on-year to $38.92 billion in March, even as imports declined by 6.51% to $59.59 billion, reflecting disruptions in global trade routes amid geopolitical tensions. Despite the monthly dip, the country’s overall exports posted a 4.22% growth in the financial year 2025-26, highlighting resilience in external trade.
According to official data released by the government, the merchandise trade deficit narrowed to $20.67 billion in March, aided by lower imports and a sequential rise in exports from February levels. However, the broader annual picture showed a widening gap between exports and imports.
For FY2025-26, India’s total exports of goods and services rose to $860.09 billion, up from $825.26 billion in the previous fiscal. Imports, however, grew at a faster pace of 6.47% to around $979.40 billion, leading to a sharp increase in the overall trade deficit to $119.30 billion from $94.66 billion in 2024-25.
Commerce Secretary Rajesh Agrawal said services continued to drive export growth, with outbound shipments rising to $418.31 billion from $387.55 billion a year earlier. In contrast, merchandise exports registered modest growth, increasing to $441.78 billion from $437.70 billion.
On the import side, merchandise imports climbed significantly to $774.98 billion from $721.20 billion, reflecting strong domestic demand and higher global prices of key commodities. Services imports also edged up to $204.42 billion, compared to $198.72 billion in 2024-25.
Among commodities, gold imports rose sharply in value to $71.98 billion despite a decline in volume, indicating a surge in international prices. Similarly, silver imports recorded a steep increase in both quantity and value, underscoring heightened demand and price pressures.
Data also showed that trade excluding petroleum and gems and jewellery remained relatively balanced, with exports at $777.98 billion and imports at $702.98 billion, although the surplus narrowed slightly.
Over the past few years, India’s trade deficit has remained elevated, rising from $78.39 billion in 2023-24 to $94.66 billion in 2024-25 and further to $119.30 billion in FY2025-26.
The March trade performance was influenced by disruptions in key shipping routes such as the Strait of Hormuz due to tensions in West Asia, impacting both exports and energy imports.
Despite these challenges, officials remain optimistic about sustaining export momentum, supported by strong services performance, improving manufacturing competitiveness and efforts to deepen global trade partnerships.
