Trade Deficit

Despite the challenges posed by the conflict in West Asia, total merchandise exports rose to a 49-month high of $43.6 billion in April 2026, said Aditi Nayar, chief economist at Icra Ltd. This partly benefitted from higher commodity prices.

The Indian government has increased import duties on gold and silver to 15% to curb foreign purchases and protect foreign exchange reserves. This may dampen demand and support the rupee, but experts warn it could also lead to increased smuggling.

The Indian Government has raised effective import tariffs on gold and silver to 15%. The move aims to curb bullion imports and strengthen the Indian National Rupee against the US Dollar

The rupee fell 0.2% to 95.02 against the dollar due to Federal Reserve signals and rising oil prices. It faces its third weekly drop, influenced by increased import bills and capital outflows, with analysts noting the impact of both oil and monetary policy on the currency.

Merchandise exports in March were estimated at $38.92 billion, down from $42.05 billion in the same month a year ago. Imports declined more sharply to $59.59 billion from $63.74 billion a year earlier, helping narrow the deficit.

The February deficit is lower than the $34.68 billion recorded in January, when a sharp rise in imports widened the trade gap to the highest level in several months.

From the Nifty 500 pack, some 75 stocks have seen a decline of 10% or more, pushing them into bear grip in a span of just one week, shows data from Capitaline as of close on March 9.

US trade deficit rose to $70.3 billion in December 2025, ending a year in which the overall gap was largely unchanged despite tariff efforts. Imports increased while exports fell. For 2025, deficit totalled $901.5 billion. The data contradict Trump’s claim that tariffs sharply reduced trade gap.