India's Export Landscape: A Closer Look at Recent Trends Amid Global Turmoil

India's merchandise exports faced a significant decline in March, dropping by 7.44% to USD 38.92 billion, influenced by disruptions in trade routes due to conflicts in West Asia. Imports also decreased, leading to a trade deficit of USD 20.67 billion. Despite these challenges, Commerce Secretary Rajesh Agrawal reported a 4.22% increase in total exports for the financial year 2025-26. The article delves into the implications of the ongoing geopolitical tensions on trade and highlights the anticipated free trade agreement with the UK.

By Narendra Chaudhary Apr 15, 2026, 15:54 IST

Merchandise Exports Experience Decline

New Delhi: Recent government statistics indicate that India's merchandise exports fell by 7.44% to reach USD 38.92 billion in March.

Similarly, imports saw a decrease of 6.51%, dropping to USD 59.59 billion from USD 63.75 billion in the same month last year. This decline is attributed to disruptions in key trade routes, particularly the Strait of Hormuz, amid ongoing conflicts in West Asia.

The trade deficit for the month was recorded at USD 20.67 billion.

During a media briefing, Commerce Secretary Rajesh Agrawal highlighted that despite these challenges, the country's export performance remains robust.

He noted that the total exports of goods and services increased by 4.22% to USD 860 billion for the financial year 2025-26.

For the April-March period of 2025-26, merchandise exports rose by 1% to USD 441.78 billion, compared to USD 437.7 billion the previous year. Imports also surged to USD 774.98 billion, up from USD 721.2 billion in 2024-25.

Also Read: Jaishankar meets UAE president, discusses West Asia crisis impact

The commerce secretary further estimated that services exports would reach USD 418.31 billion in 2025-26.

Agrawal pointed out that due to the ongoing conflict involving the US, Israel, and Iran, India's exports to the Middle East plummeted by 57.95% in March, with total imports from the region also declining by 51.64% during the same period.

Additionally, he mentioned that the free trade agreement between India and the UK is expected to be implemented next month.