New Delhi, April 15 -- India's merchandise trade deficit narrowed to $20.67 billion in March as imports eased from the previous year, though elevated purchases of energy, gold and electronics continued to weigh on the overall trade balance at the close of FY26.

The West Asia war has kept freight costs elevated and injected fresh uncertainty into global trade flows.

The gap between merchandise imports and exports was less than $21.69 billion in March 2025, according to provisional estimates released by the ministry of commerce and industry on Wednesday.

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 ...