India's FY2026 Exports Grow 1%, Deficit Widens 26%

India's merchandise exports grew modestly by 1 percent to 441.78 billion dollars in the fiscal year ending March 2026, according to data released by the Commerce Ministry on April 15. However, the trade deficit widened significantly by more than 26 percent to 333.2 billion dollars, driven by higher imports amid global challenges including a conflict in West Asia that disrupted trade routes.

The overall picture for the year showed resilience in exports despite headwinds. Combined merchandise and services exports reached 860 billion dollars, marking a 4.22 percent increase from the previous fiscal year. Services exports alone rose about 8 percent to 418.31 billion dollars. Imports totaled 774.98 billion dollars for merchandise, up from 721.2 billion dollars a year earlier, with officials citing spikes in gold and silver prices as a key factor. Commerce Secretary Rajesh Agrawal noted that exports performed well overall, even with reciprocal tariffs from the United States and the West Asia war.

March brought sharper declines, with merchandise exports falling 7.44 percent year-on-year to 38.92 billion dollars and imports dropping 6.51 percent to 59.59 billion dollars. This narrowed...