India's trade deficit in March shrinks to $20.98B
What's the story
India's merchandise trade deficit narrowed to $20.98 billion in March, according to Reuters calculations based on government data. The figure is significantly lower than the expected deficit of $32.75 billion for the month. This marks an improvement over February's deficit of $27.1 billion and indicates a positive trend in India's trade balance for March.
Trade details
A look at export-import figures for March
India's merchandise exports fell by 7.44% year-on-year to $38.92 billion in March, down from $42.05 billion last year. The decline indicates a slowdown in outbound shipments at the end of the fiscal year. On the other hand, India's merchandise imports also declined to $59.90 billion during the same period, contributing to a narrower trade deficit for March compared to February's figures.
Export growth
Overall exports of goods, services estimated to grow 4.22%
India's overall exports of goods and services are estimated to have grown by 4.22% year-on-year to about $860 billion in 2025-26, Commerce Secretary Rajesh Agrawal said. The services sector continued to be a major contributor with an estimated value of $418.31 billion during the fiscal year. This highlights India's growing strength in sectors such as IT, business services, and financial services.