Commerce and Industry Minister Piyush Goyal is set to convene a crucial meeting with export promotion councils and industry bodies on April 27 to strategize on enhancing outbound shipments. This meeting comes amidst concerns over declining exports and disruptions in global geopolitics, especially in West Asia. The ongoing tensions involving the US, Israel, and Iran have led to trade route disruptions, with shipping companies showing reluctance to operate in parts of the Middle East, a significant market for Indian exports.
The interaction with exporters follows the anticipated signing of a free trade agreement between India and New Zealand at Bharat Mandapam. Todd McClay, accompanied by a business delegation, is currently in India engaging with Indian industry leaders. Prior to the formal meeting, Minister Goyal is engaging with business leaders from both countries in Agra, emphasizing efforts to strengthen trade relations and identify new market prospects.
Various sectors like leather, pharmaceuticals, auto, sports goods, and engineering are expected to participate in the upcoming meeting. The urgency of these discussions is highlighted by the recent decline in India’s merchandise exports, which saw a 7.44% drop in March to $38.92 billion, the sharpest decline in five months. Notably, exports to West Asia were severely impacted, contracting by over 50% during the same period.
In March, imports also decreased by 6.51% to $59.59 billion, primarily due to lower crude oil and gold shipments. Consequently, the trade deficit narrowed to a nine-month low of $20.67 billion. However, the concerning trend persists, with India’s exports to the Middle East plummeting nearly 58% and imports from Gulf nations declining over 51%.
During the financial year 2025-26, India’s merchandise exports saw a modest growth of 0.93% to reach a record high of $441.78 billion. In contrast, imports rose by 7.45% to $775 billion, resulting in a trade deficit of $333.2 billion, largely driven by increased gold and silver imports. Overall, the country’s goods and services exports combined grew by 4.22% to a record $860.09 billion in 2025-26.
