- Trade deficit drops to 9-month low of $20.67 billion
- Exports rise to $38.92 billion, imports decline
- US-bound exports jump 17.4% on tariff cuts
- Iran conflict disrupts shipping, raises costs
GG News Bureau
New Delhi, 16th April: India’s merchandise trade deficit narrowed sharply to a nine-month low of $20.67 billion in March, driven by a surge in exports to the United States even as the ongoing Iran conflict disrupted global shipping routes.
According to data released by the trade ministry, exports rose to $38.92 billion in March from $36.61 billion in February, while imports declined to $59.59 billion from $63.71 billion.
US Demand Cushions Global Disruptions
Exports to the United States climbed 17.4% month-on-month to $8.02 billion, aided by a reduction in tariffs to 10% following a US court ruling. The tariff relief boosted shipments of textiles and engineering goods, strengthening India’s position in its largest export market.
Iran Conflict Hits Supply Chains
The improvement in trade balance comes despite mounting challenges from the Iran war, which has disrupted shipping near the Strait of Hormuz—one of the world’s most critical oil and trade routes.
Trade Secretary Rajesh Agrawal noted that exports to the Middle East dropped by $3.5 billion in March, highlighting the conflict’s impact on regional trade flows.
Rising freight and insurance costs, along with delays in maritime routes, continue to weigh on exporters.
Energy and Gold Imports Decline
India’s import bill saw relief as crude oil and related imports fell nearly 36% year-on-year to $12.18 billion, while gold imports dropped 31.6% to $3.06 billion.
As the world’s third-largest oil consumer, India relies heavily on Middle Eastern supplies, making it particularly vulnerable to disruptions in Gulf shipping routes.
Services Trade Remains Strong
India’s services sector continued to provide a cushion, with exports estimated at $35.20 billion and imports at $16.96 billion, resulting in a surplus of $18.24 billion.
Trade Talks with US to Resume
Amid shifting global dynamics, India is pushing to finalise an interim trade agreement with the US. An Indian delegation is set to visit Washington from April 20 to resume in-person negotiations after months of virtual discussions.
Annual Trade Picture
For the fiscal year ending March, India’s total goods and services exports rose 4.22% to $860.09 billion, while imports increased 6.36% to $978.40 billion, widening the overall trade deficit to $119.3 billion.
