India’s exports hit $41.97 billion in March, but trade deficit widens due to rising imports.

India’s merchandise exports rose marginally by 0.67% year-on-year in March to $41.97 billion, even as global trade remained under pressure from geopolitical tensions and a growing trade war. According to data from the Department of Commerce, imports surged 11% during the same period, reaching $63.51 billion.

This sharp increase in imports led to a widened trade deficit of $21.54 billion for March, up from $15.31 billion a year earlier. On an annual basis, merchandise exports for FY25 remained nearly flat at $437.42 billion compared to $437.07 billion in the previous year. However, total exports, including services, climbed to $820 billion from $778 billion.

Commerce officials acknowledged FY25 as a challenging year for trade, citing disrupted sea routes and weak global demand. Adding to the uncertainty, recent U.S. tariffs on imports have pressured Indian exporters, who now face demands to absorb part of the cost burden, clouding the outlook for new export orders.

Source: Business Standard