Trade Deficit Drops to $20.67 Billion in March

15-Apr-2026 07:52 PM

New Delhi. India's merchandise trade deficit narrowed slightly in March 2026, settling at $20.67 billion—a figure significantly lower than market expectations.

It is understood that the ongoing conflict between Iran and Israel in West Asia led to a decline in energy imports, while the export of various products to countries in the Gulf region was also impacted.

Despite these factors, the export performance of Indian products remained robust in March, whereas the pace of imports into India slowed down.

It is noteworthy that the largest share of India's foreign exchange expenditure is incurred on petroleum imports, which creates a significant imbalance in the trade balance. Following this, the import of gold, silver, and other precious metals accounts for the next-largest outflow of foreign exchange.

Elevated prices in the international market also had an impact on the import of these commodities. The third major category in this sequence is edible oils; compared to February, the import of edible oils into India also witnessed a slight decline during March.

Conversely, the country recorded improved export performance in petroleum products, gems and jewelry, and various agricultural commodities. This collective trend resulted in a substantial reduction in the trade deficit.