“In March 2026, when one of the key sea routes was disrupted due to the West Asia conflict, engineering goods exports recorded a marginal growth of 1.1%. During this period, total engineering exports stood at $10.94 billion as compared to $10.82 billion in March 2025,” Chadha said.
The goods trade deficit in March eased marginally to $20.67 billion compared to $21.69 billion during March last year, driven by a sharp decline in imports of petroleum products as well as exports of rice, gems & jewellery and electronic goods to the West Asia region, data released by the Commerce and Industry Ministry showed.
While India’s goods exports in March slipped by 7.4% to $38.92 billion compared to $42.05 billion in March last year, imports declined 6.9% to $59.59 compared to $63.74 billion, data showed.
“The key reason for the impact on trade is the West Asia crisis. Exports to the West Asia region slipped by 57.95% and imports by 51.64%. Our monthly exports to the West Asia region were about $6 billion, which has come down to $3.5 billion. Due to the crisis, April could also be a tough month, but our export industry is quick to adapt,” Commerce Secretary Rajesh Agarwal said.
Agrawal said total exports during the last financial year crossed $860 billion, about 4.22% higher compared to the previous year. The imports driven primarily by gold prices also surged by 6.7% to $974 billion. “There have been trade challenges during the last financial year due to tariffs, but goods exports have surged by 1% to $441 billion compared to the previous financial year,” Agarwal said.
Data showed that imports from the UAE, Saudi Arabia, Iraq, and Qatar in March slipped 66.32%, 37.32%, 64.30% and 47.89%, respectively. Exports to the UAE also declined by 61.93% and to Saudi Arabia by 45.67%. However, exports even to the US slipped by 20%.
Most labour-intensive sectors registered a steep decline in exports during March. While gems and jewellery exports slipped by nearly 30%, readymade garments declined 19%. Drugs and pharma exports also slipped by 19% in March.
Federation of Indian Export Organisations (FIEO) President S.C. Ralhan said that the increase in exports during the last financial year was driven by a diversified basket comprising engineering goods, petroleum products, electronics, pharmaceuticals, chemicals, textiles, gems and jewellery, rice and marine products, further strengthening India’s position in global value chains.
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“The US, UAE, China, the Netherlands and the UK remained the main destinations for exports. FIEO stressed the need to effectively leverage free trade agreements to further diversify markets and expand India’s global reach,” he said.
Pankaj Chadha, Chairman, Engineering Exports Promotion Council (EEPC), said that the West Asia conflict that started on February 28 has caused serious supply chain disruptions, leading to a spike in energy prices. “Prices of several raw materials have seen an upward trend and an inflationary trend. The WPI-based inflation in March reached almost a three-year high of 3.88%. In light of the above, we remain cautiously optimistic about the engineering exports growth outlook in FY27,” Chadha said.
“In March 2026, when one of the key sea routes was disrupted due to the West Asia conflict, engineering goods exports recorded a marginal growth of 1.1%. During this period, total engineering exports stood at $10.94 billion as compared to $10.82 billion in March 2025,” Chadha said.
Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, specializing in economic policy and financial regulations. With over five years of experience in business journalism, he provides critical coverage of the frameworks that govern India's commercial landscape.
Expertise & Focus Areas: Mishra’s reporting concentrates on the intersection of government policy and market operations. His core beats include:
Trade & Commerce: Analysis of India's import-export trends, trade agreements, and commercial policies.
Banking & Finance: Covering regulatory changes and policy decisions affecting the banking sector.
Professional Experience: Prior to joining The Indian Express, Mishra built a robust portfolio working with some of India's leading financial news organizations. His background includes tenures at:
Mint
CNBC-TV18
This diverse experience across both print and broadcast media has equipped him with a holistic understanding of financial storytelling and news cycles.
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