In March, India’s merchandise exports saw a slight uptick of 0.7%, reaching $41.97 billion, marking a small rebound after four months of decline. However, imports surged by 11.3% to $63.15 billion, resulting in a notable trade deficit of $21.54 billion. This trend reflects the ongoing challenges and changes within the country’s trade landscape.

Annual Export and Import Overview

For the fiscal year 2024-25, India’s goods exports totaled $437.42 billion, which translates to a negligible growth of 0.08% compared to the previous year’s figures, while imports increased by 6.62% to $720.24 billion. In the earlier fiscal year, 2023-24, exports had dropped by 3.1%.

• Overall exports, including services, surpassed $820 billion, showcasing a 5.5% year-on-year growth.
• Services exports were particularly robust, estimated at $383.51 billion, representing a 12.4% increase.

March Performance Insights

March’s export figures were particularly promising, outperforming the previous eleven months, primarily due to heightened shipments in the engineering and electronics sectors. This surge may have been influenced by businesses rushing to dispatch goods in anticipation of potential tariffs from the United States. Notably, the U.S. accounts for 18% of India’s goods exports and recently announced a temporary halt on a proposed 26% tariff, although a 10% baseline tariff and 25% duties on steel and aluminum remain in effect.

Despite facing global challenges—such as disrupted shipping routes due to geopolitical unrest and economic downturns in other nations—India’s commerce secretary, Sunil Barthwal, proclaimed that merchandise exports for 2024-25 reached record highs. He suggested that total exports could exceed $842 billion, once final service figures are confirmed.

Key Sector Developments

Interestingly, the resilience in merchandise exports is notable, particularly given a $20 billion decline in petroleum product exports, which fell by 24.73% to $63.34 billion due to lower crude oil prices. Meanwhile, the gems and jewelry sector also faced challenges, seeing a 7.33% drop to $29.81 billion.

Conversely, several sectors demonstrated significant growth:

• Engineering exports rose by 6.74% to $116.67 billion.
• Electronics exports surged by an impressive 31.79% to $38.38 billion.
• Pharmaceutical exports increased by 9.40% to $30.47 billion.
• Ready-made garments climbed by 10.04% to $15.99 billion.

Import Trends and Gold Insights

To support electronics manufacturing, imports of electronics spiked to $98.73 billion from $87.86 billion in 2023-24. Additionally, rice exports grew by 19.67% to $12.47 billion, while cotton yarn and fabrics increased by 3.25% to $12.06 billion.

As for gold, imports soared to $58.01 billion last fiscal year, up from $45.54 billion in 2023-24, driven by rising gold prices, although the volume of imports decreased to 757.15 tonnes from 795.32 tonnes.

Recent Trade Deficit Figures

In February 2025, India’s merchandise trade deficit narrowed to $14.05 billion, the lowest since August 2021. Exports fell by 10.8% to $36.9 billion, marking the fourth consecutive month of decline, while imports dropped by a sharper 16.3% to $50.96 billion, the lowest level since April 2023.

With these developments, India’s trade landscape continues to evolve, showcasing both challenges and opportunities across various sectors.