India’s merchandise trade deficit decreased to $20.67 billion in March this year, with exports rising by 6.3% to $38.92 billion from $36.61 billion in February, according to official data from the Commerce Ministry. Commerce Secretary Rajesh Agrawal mentioned that India’s total exports for 2025-26 surpassed $860.09 billion, marking a 4.22% growth compared to the previous year.
India’s imports dropped by 5.98% to $59.9 billion from $63.71 billion in the same month, contributing to the reduction in the fiscal deficit. Indian oil companies reportedly utilized their strategic reserves of oil to maintain petroleum production, rather than purchasing large amounts of crude, as oil prices exceeded $100 a barrel during the period, leading to a decrease in the oil import bill.
The recent trade figures are influenced by ongoing trade disruptions due to the Middle East conflict, posing a potential risk to the global economy. Amidst this, the US military declared a complete blockade of Iran’s ports, prohibiting any ships from entering or leaving the country. However, President Donald Trump indicated the possibility of resuming talks with Tehran to end the conflict.
The conflict has compelled Iran to effectively close the Strait of Hormuz, a critical global waterway through which 20% of the world’s oil and gas exports pass. Despite this, Iran allowed some Indian LPG ships to sail through the Strait of Hormuz, with vessels like Jag Vikram and Green Asha bringing essential cargo, including cooking gas, to Indian ports, augmenting domestic supplies during the crisis.
