Mumbai, April 16 -- India's merchandise trade deficit narrowed unexpectedly in March, helped by a strong rise in exports to the United States even as the ongoing Iran conflict disrupted shipping routes and pushed up energy costs.

The trade deficit fell to a nine-month low of $20.67 billion. Exports increased to $38.92 billion in March from $36.61 billion in February, while imports declined to $59.59 billion from $63.71 billion, according to trade ministry data.

Exports to the U.S. rose 17.4% month on month to $8.02 billion. This growth followed a reduction in tariffs to 10% after a U.S. Supreme Court ruling, boosting shipments of textiles and engineering goods to India's largest export market, where tariffs had previously reached up to ...