India’s merchandise exports fell at their fastest pace in five months in March, weighed down by the trade uncertainty and geopolitical tensions that curtailed shipments to West Asia. Exports declined 7.44% year-on-year to $38.92 billion in March, with outbound shipments to the Middle East plunging nearly 58%, dragging overall trade performance.
India’s trade deficit, however, narrowed to a nine-month low of $20.67 billion in March on account of lower imports. Imports dropped 6.51% to $59.59 billion, led by a steep decline in crude oil and gold purchases.
Overall Trade (Merchandise + Services): March 2026 & FY 2025-26 (April–March)
- Total exports (Merchandise + Services) for March 2026 were estimated at US$ 74.11 Billion, registering a negative growth of (-) 4.58% over March 2025.
- Total imports stood at US$ 76.55 Billion, registering a negative growth of (-) 5.76% over March 2025.
- Overall trade balance improved to (-) US$ 2.44 Billion from (-) US$ 3.55 Billion in March 2025.
Overall Trade (Merchandise + Services): FY 2025-26 (April–March)
- Total exports for FY 2025-26 were estimated at US$ 860.09 Billion, registering a positive growth of 4.22% over FY 2024-25.
- Total imports stood at US$ 979.40 Billion, growing by 47%.
- Overall trade deficit widened to US$ 119.30 Billion from US$ 94.66 Billion in FY 2024-25.
Merchandise Trade
- March 2026: Merchandise exports stood at US$ 38.92 Billion (vs US$ 42.05 Billion in March 2025). Merchandise imports stood at US$ 59.59 Billion (vs US$ 63.74 Billion in March 2025).
- FY 2025-26: Merchandise exports were US$ 441.78 Billion (vs US$ 437.70 Billion in FY 2024-25). Merchandise imports were US$ 774.98 Billion (vs US$ 721.20 Billion). Merchandise trade deficit widened to US$ 333.19 Billion from US$ 283.50 Billion in FY 2024-25.
- Non-Petroleum & Non-Gems & Jewellery exports in March 2026 stood at US$ 31.69 Billion (vs US$ 34.25 Billion in March 2025). For FY 2025-26, they stood at US$ 359.67 Billion (vs US$ 344.50 Billion).
Services Trade
- March 2026: Services exports estimated at US$ 35.20 Billion (vs US$ 35.63 Billion in March 2025). Services imports at US$ 16.96 Billion (vs US$ 17.48 Billion).
- FY 2025-26: Services exports grew by 94% to US$ 418.31 Billion (vs US$ 387.55 Billion). Services imports stood at US$ 204.42 Billion. Services trade surplus rose to US$ 213.89 Billion from US$ 188.84 Billion in FY 2024-25.
Commodity-wise Highlights: March 2026
| Positive Export Growth | Other Cereals (+108.23%), Handicrafts (excl. handmade carpet) (+8.51%), Petroleum Products (+5.88%), Engineering Goods (+1.13%), Marine Products (+0.76%), Mica, Coal & Other Ores (+11.27%) |
|---|---|
| Negative Import Growth | Petroleum (crude & products) (-35.91%), Gold (-31.63%), Cotton Raw & Waste (-30.38%), Project Goods (-23.7%), Pulses (-21.81%), Iron & Steel (-14.21%) |
Top Export Destinations & Import Sources
| Top Export Destinations (March 2026 – by growth) | Singapore (+158.55%), Tanzania (+100.54%), Sri Lanka (+88.31%), Malaysia (+84.47%), China (+28.1%) |
|---|---|
| Top Export Destinations (FY 2025–26 – by growth) | Spain (+46.33%), China (+36.66%), Hong Kong (+33.22%), Vietnam (+22.78%), Sri Lanka (+21.14%) |
| Top Import Sources (March 2026 – by growth) | Peru (+267.67%), Oman (+112.01%), Thailand (+64.53%), China (+24.81%), USA (+14.4%) |
| Top Import Sources (FY 2025–26 – by growth) | Peru (+78.08%), UK (+36.09%), Hong Kong (+23.32%), China (+16.03%), USA (+15.95%) |