India exports fall 7.44% in March to $38.92 bn amid Middle East disruption, trade deficit at $20.67 bn

India’s merchandise exports declined 7.44% year-on-year to $38.92 billion in March as disruptions in key trade routes amid the Middle East conflict weighed on outbound shipments.Imports also fell 6.51% to $59.59 billion from $63.75 billion in the year-ago period, reflecting the impact of tensions affecting routes such as the Strait of Hormuz, according to government data cited by PTI.The country’s trade deficit stood at $20.67 billion during the month.Briefing reporters, Commerce Secretary Rajesh Agrawal said exports have remained resilient despite global headwinds.He said India’s total exports of goods and services rose 4.22% to $860 billion in 2025-26.Merchandise exports during April-March 2025-26 increased 1% to $441.78 billion from $437.7 billion in the previous year, while imports rose to $774.98 billion from $721.2 billion.Services exports were estimated at $418.31 billion for the fiscal year, he said.Agrawal said the ongoing conflict involving the US, Israel and Iran, which began on February 28, significantly impacted regional trade flows.India’s exports to the Middle East declined 57.95% in March, while imports from the region fell 51.64% during the same period, he said.He also indicated that the proposed free trade agreement between India and the UK could come into force next month.