India’s merchandise exports dropped 7.44% to $38.92 billion in March, according to a PTI report based on government data released on Wednesday. Imports also dipped by 6.51% to $59.59 billion from $63.75 billion recorded in the year-ago month (March 2025).
The trade deficit narrowed to $27.1 billion in March from $20.67 billion reported in February.
Iran-US war hits India trade: Exports plunge nearly 58%
The decline in exports and imports came amid the Middle East conflict, which has disrupted key trade supply routes, including the Strait of Hormuz.
Commerce Secretary Rajesh Agrawal said, according to PTI, that due to the war involving the US, Israel, and Iran, which began on February 28, India’s exports to the Middle East region fell 57.95% in March. He added that total imports from that region also declined by 51.64% last month.
According to PTI, Commerce Secretary said that gems & jewellery, electronics, engineering, petroleum products, rice hit are the key sectors that are being hit.
Trade remains resilient, services export hit $860 billion
However, while briefing the media on the trade data, Agrawal said that the country’s exports are doing well despite the challenges. He added that the country’s exports of goods and services rose 4.22% to $860 billion during the 2025–26 financial year.
The country’s merchandise exports during April–March 2025–26 increased by 1% to $441.78 billion from $437.7 billion.
Imports also rose to $774.98 billion during the period, up from $721.2 billion in 2024–25. Services exports are estimated at $418.31 billion in 2025–26, the Commerce Secretary said.
The Commerce Secretary also said that the free trade agreement between India and the UK may come into force next month. India-US trade, on the other hand, is still facing roadblocks.
Additional Secretary Darpan Jain said that the Indian team will visit Washington for trade talks from April 20. Important to note, US president Donald Trump recently threaten to impose 100% tariff on Pharma sector.
With the input from PTI