India’s trade deficit narrows to $20.67 billion in March on West Asia risks

Economists polled by Reuters had projected a deficit of $32.75 billion for the month, compared with $27.1 billion in February.

Also Read: India’s wholesale inflation at multi-year high of 3.88% in March; up from 2.13% in February


The improvement was driven by a combination of higher exports and softer imports. Merchandise exports rose to $38.92 billion in March from $36.61 billion in February, while imports declined to $59.9 billion from $63.71 billion, according to government data.

However, the outlook remains clouded by geopolitical tensions in West Asia. The United States said its military had halted maritime trade linked to Iran, even as President Donald Trump indicated that talks with Tehran to end the conflict could resume.

Unlike export-oriented economies such as Japan, South Korea and Taiwan, India relies heavily on Gulf shipping routes, leaving it more exposed to disruptions and cost pressures stemming from the ongoing conflict.

Also Read: India's trade deficit narrows on month to $27.1 billion in Feb; Tariff uncertainty, Iran conflict loom

Additionally, India’s overall exports of goods and services are estimated to have risen 4.22% year-on-year to around $860 billion in 2025-26, Commerce Secretary Rajesh Agrawal said.