India’s goods trade deficit narrowed to $20.67 billion in March from $21.69 billion a year earlier, data from the Commerce and Industry Ministry showed. The easing came amid a West Asia crisis that curbed petroleum imports and exports to the region. Goods exports for FY26 rose 1% to $441 billion.
India’s goods exports fell 7.4% to $38.92 billion in March from $42.05 billion a year ago, while imports dropped 6.9% to $59.59 billion from $63.74 billion, Commerce and Industry Ministry data showed.
Commerce Secretary Rajesh Agarwal attributed the shifts to the West Asia crisis, noting exports to the region plunged 57.95% and imports 51.64%. “Our monthly exports to West Asia were about $6 billion, which has come down to $3.5 billion,” he said. Imports from UAE, Saudi Arabia, Iraq, and Qatar declined by 66.32%, 37.32%, 64.30%, and 47.89% respectively, with exports to the US also down 20%.
For FY26, total exports exceeded $860 billion, up 4.22%, while imports rose 6.7% to $974 billion. Goods exports grew 1% to $441 billion despite challenges. Federation of Indian Export Organisations President S.C. Ralhan highlighted a diversified export basket including engineering goods and pharmaceuticals, with key markets like the US, UAE, China, Netherlands, and UK.
Engineering Exports Promotion Council Chairman Pankaj Chadha pointed to supply chain disruptions from the West Asia conflict starting February 28, which spiked energy prices and pushed WPI inflation to a three-year high of 3.88%. Engineering exports still rose marginally 1.1% to $10.94 billion in March from $10.82 billion a year earlier.
