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As on : 16-Apr-2026

Economy - Reports
16-Apr-2026 08:53

India's trade deficit narrows to nine-month low in March

India's merchandise trade deficit narrowed unexpectedly in March, helped by a strong rise in exports to the United States even as the ongoing Iran conflict disrupted shipping routes and pushed up energy costs.

The trade deficit fell to a nine-month low of $20.67 billion. Exports increased to $38.92 billion in March from $36.61 billion in February, while imports declined to $59.59 billion from $63.71 billion, according to trade ministry data.

Exports to the U.S. rose 17.4% month on month to $8.02 billion. This growth followed a reduction in tariffs to 10% after a U.S. Supreme Court ruling, boosting shipments of textiles and engineering goods to India's largest export market, where tariffs had previously reached up to 50% on many products.

The data highlights mixed trends for India's exports. On one hand, supply disruptions and higher logistics costs due to the Iran conflict are creating challenges. On the other hand, improving demand from the U.S. is supporting export growth.

Meanwhile, imports of crude oil and related products dropped nearly 36% year on year to $12.18 billion in March, and gold imports fell 31.6% to $3.06 billion.

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