India's Trade Dynamics Amid West Asia Conflict

In March, India's merchandise exports saw a significant decline of 7.44%, totaling USD 38.92 billion, with imports also down by 6.51% to USD 59.59 billion, attributed to disruptions caused by the West Asia conflict, particularly affecting key trade routes like the Strait of Hormuz.

Commerce Secretary Rajesh Agrawal provided insights, stating that despite adversities, the nation's exports have shown resilience. He reported a 4.22% increase in the export of goods and services to USD 860 billion for the 2025-26 financial year. The country's merchandise exports settled at USD 441.78 billion, marking a 1% rise from the previous year's USD 437.7 billion. Imports also saw an uptick, reaching USD 774.98 billion.

The conflict has notably affected trade with the Middle East, with India's exports to the region plummeting by 57.95% in March, and imports declining by 51.64%. However, prospects remain promising as a free trade agreement with the UK is anticipated to be effective by next month, potentially smoothing India's trade trajectory.