India's exports drop 7.44% to $38.92 billion in March amid disruptions due to West Asia crisis

New Delhi: The country's merchandise exports dropped 7.44 per cent to $38.92 billion in March, according to government data released on Wednesday.

Imports too dipped by 6.51 per cent to $59.59 billion last year from $63.75 billion recorded in the year-ago month, reflecting disruptions in major trade routes like the Strait of Hormuz due to the conflict in West Asia.

The country's trade deficit stood at $20.67 billion during the month under review.

Briefing the media on the trade data, Commerce Secretary Rajesh Agrawal said that the country's exports are doing well despite challenges.

He said the country's exports of goods and services rose 4.22 per cent to $860 billion during the 2025-26 financial year.

The country's merchandise exports during April-March 2025-26 went up 1 per cent to $441.78 billion from $437.7 billion. Imports also increased to $774.98 billion during the period from $721.2 billion in 2024-25.

Services exports are estimated at $418.31 billion in 2025-26, the commerce secretary said.

Due to the war involving the US, Israel and Iran, which began on February 28, India's exports to the Middle East region fell 57.95 per cent in March, Agrawal said, adding that total imports from that region also declined by 51.64 per cent last month.

The commerce secretary also said that the free trade agreement between India and the UK may come into force next month.