Global Tensions Impact India's Trade: A Mixed Fiscal Year

India's exports faced a challenging March 2026, declining due to geopolitical tensions, particularly with West Asia. Despite this, the fiscal year 2025-26 saw a record in both exports and imports. Commerce Secretary Rajesh Agrawal remains optimistic about future growth, citing upcoming free trade agreements as potential catalysts.

Exports from India experienced a steep decline of 7.44% in March, reaching USD 38.92 billion, primarily due to geopolitical uncertainties and trade disruptions, particularly affecting West Asia where shipments plummeted over 50%.

Conversely, the trade deficit shrank to a nine-month low of USD 20.67 billion as imports decreased by 6.51%, influenced by notable reductions in crude oil and gold imports.

Despite these challenges, fiscal year 2025-26 marked a milestone with a 0.93% rise in exports, reaching USD 441.78 billion, amid optimism for more robust trade stimulated by forthcoming free trade agreements, as noted by Commerce Secretary Rajesh Agrawal.