New Delhi, April 17 -- India's trade deficit outlook remains under pressure despite a temporary narrowing in March, with weak export momentum and rising import demand likely to keep the imbalance elevated in the near term, according to a report by Nuvama.

The report noted that India's goods trade deficit narrowed to USD 21 billion in March 2026 from USD 27 billion in February, primarily due to a decline in gold and oil imports. However, this improvement is seen as largely transient, with underlying weaknesses persisting.

"Core deficit (excluding oil and gold) widened... pointing to continued structural pressures on the trade balance," the report highlighted.

For the full financial year FY26, the trade deficit widened sharply to a recor...