India’s merchandise exports in March rose marginally by 0.67 per cent year-on-year to $41.97 billion, even as global trade faced headwinds from geopolitical tensions and protectionist measures, according to data released by the Department of Commerce on Monday.
On the other hand, imports surged by 11 per cent to $63.51 billion during the month, leading to a significant widening of the trade deficit. The gap between exports and imports stood at $21.54 billion in March, up from $15.31 billion in the same period last year.
For the full financial year 2024–25, merchandise exports remained nearly unchanged at $437.42 billion, compared to $437.07 billion in the previous year. However, total exports — including both goods and services — grew to $820 billion from $778 billion in FY24, showing resilience in the services sector.
Commenting on the performance, Commerce Secretary Sunil Barthwal acknowledged the challenges faced during the fiscal year, citing disruptions in global shipping routes, ongoing geopolitical strife, and recessionary trends in key economies. Despite these pressures, India has fared better than many other countries, he said during a media briefing, according to a Business Standard report.
Concerns Persist
However, concerns persist for the near-term outlook of India’s outbound shipments. The threat of reciprocal tariffs from the United States looms large, particularly after Washington imposed a 25 per cent duty on imports of steel, aluminium, and automobiles. The US has also recently levied a 10 per cent import tax on goods from all trade partners except China.
Exporters say American buyers are now demanding Indian suppliers absorb a significant portion — nearly one-third to half — of the new tariffs, as per the report. This cost pressure, coupled with demand uncertainty, is clouding the prospects for new export orders in the coming months.
