India’s merchandise exports fell over 7% in March, primarily due to the ongoing Iran war and the lingering effects of U.S. tariffs. The latest data from the commerce ministry reveals that goods exports dropped to $38.9 billion from $42.1 billion a year earlier, with significant declines in shipments to key markets like the UAE and the U.S., down 62% and 21% respectively. A report from Nomura highlights widespread weakness across major export categories, including textiles and chemicals.
This decline underscores the mounting challenges for Indian exporters, who are grappling with a “troika of headwinds”—cost inflation driven by the Iran conflict, rising shipping costs, and weakened global demand. The financial year ending March 2026 saw minimal growth in exports, raising concerns about India’s ambitious target of achieving $2 trillion in exports by 2030.
Market professionals should note that the current export landscape may remain challenging, with liquidity pressures and potential delays in recovery from geopolitical tensions. As a result, monitoring trade developments and government responses will be crucial for assessing future market impacts.
Source: cnbc.com