India’s merchandise trade deficit widened to $28.38 billion in April amid continued Middle East conflict. India’s merchandise exports rose to $43.56 billion from $38.92 billion in March, while imports rose to $71.94 billion from $59.59 billion.
However, exports to West Asia declined 28% to $4.16 billion in April 2026 as against $5.78 billion in April 2025. Imports from the region dipped 31.64% to $10.47 billion in April from $15.32 billion in the year-ago period.
Gold imports seen near 30-year
India’s services exports stood at $37.24 billion in April, while imports were at $16.66 billion, according to Reuters. India’s April gold imports likely remained subdued, with shipments seen falling to a near 30-year low after banks halted purchases, which may have helped contain the overall trade gap, though detailed data is still awaited.
Middle East conflict impacting India
The Middle East conflict continued to hinder shipments and disrupt energy imports after the Strait of Hormuz faced a prolonged blockade.
India, the world’s third-largest oil importer and consumer, imports more than 80% of its crude oil needs and 60% of its cooking gas, with the Middle East accounting for a large share of the supply. Global crude prices have spiked to as much as $120 per barrel since the Iran war began at the end of February, keeping the Strait of Hormuz largely shut.
Indian Prime Minister Narendra Modi has urged a series of measures, including fuel conservation, work-from-home practices, and limits on travel and imports, to conserve foreign exchange reserves.