India’s Exports Climb, Trade Deficit Shrinks to $20.67 Billion in March

New Delhi: India’s merchandise trade position improved in March, with exports rising steadily and imports declining, helping narrow the trade deficit to $20.67 billion, according to data released by the Ministry of Commerce and Industry.

Exports grew by 6.3% to reach $38.92 billion in March, up from $36.61 billion in February. At the same time, imports fell by 5.98% to $59.9 billion, compared to $63.71 billion in the previous month—providing a significant boost to the overall trade balance.

Commerce Secretary Rajesh Agrawal highlighted that India’s total exports for 2025–26 have crossed $860.09 billion, marking a 4.22% increase over $825.26 billion recorded in 2024–25.

A key factor behind the drop in imports was reduced crude oil purchases. With global oil prices surging beyond $100 per barrel, Indian oil companies turned to strategic reserves instead of increasing imports, effectively lowering the country’s oil import bill.

These developments come amid ongoing global uncertainty linked to tensions in West Asia. The situation has disrupted trade flows and raised concerns for the global economy. The conflict has also impacted critical energy routes, particularly the Strait of Hormuz, through which nearly 20% of the world’s oil and gas supplies pass.

Amid these challenges, there have been some positive developments for India’s energy security. Iran recently allowed select Indian vessels to pass through the Strait of Hormuz. The India-flagged LPG carrier Jag Vikram safely delivered around 20,400 metric tonnes of LPG to Kandla port, while another vessel, Green Asha, brought 15,400 tonnes of LPG to Jawaharlal Nehru Port.

Meanwhile, Donald Trump indicated that talks with Iran to ease the conflict could resume soon, raising hopes of reduced geopolitical tensions.

Overall, a combination of rising exports, controlled imports, and strategic resource management helped India improve its trade balance in March, even as global uncertainties continue to pose risks.

With inputs from IANS