India’s goods trade deficit declined in March to $20.67 billion compared to $27.1 billion in the previous year, government data showed on Wednesday.
The improvement came on the back of higher exports and lower imports during the month. Goods exports in March rose to $38.92 billion compared to $36.61 billion in February, while imports declined to $59.9 billion from $63.71 billion during the same period.
On a year-on-year basis, however, exports in March this year were lower by almost 8 percent compared to exports worth $42 billion in the same month in 2025.
Imports also fell compared to March 2025, when goods worth $63.7 billion were shipped into the country.
The decline in overall foreign trade in March reflects the impact of the war in West Asia, which led to the closure of the crucial Strait of Hormuz. Apart from catering to almost 20 percent of global oil trade, the narrow waterway off the coast of Oman and Iran was also important for trade of natural gas and fertilisers.
The country’s services exports stood at a muted $35.20 billion in March compared to $35.63 billion a year earlier.
Services imports fell to $16.96 billion from $17.48 billion, helping cushion the merchandise trade gap.
India’s overall exports, combining goods and services, came in at $74.11 billion in March compared to $77.67 billion in the same month a year earlier, while imports fell to $76.55 billion from $81.22 billion.
Hence, India’s overall trade deficit (merchandise plus services) eased to $2.44 billion in March 2026 from $3.55 billion in March 2025.
Total merchandise exports in FY26 stood at $441.78 billion, posting a modest rise from $437.70 billion in FY25. Imports also increased to $774.98 billion during the financial year from $721.20 billion, taking the annual merchandise trade deficit to $333.204 billion.
