India’s merchandise trade deficit widened in April.
The gap between merchandise imports and exports was $28.38 billion last month, according to provisional estimates released by the ministry of commerce and industry on Friday. Merchandise exports were estimated at $43.56 billion, up from $38.28 billion a year earlier. Imports were at $71.94 billion compared with $65.38 billion in April 2025.
The overall trade deficit, including services, narrowed to $7.81 billion in April from $11.16 billion a year ago. Total exports, including merchandise and services, rose to $80.80 billion from $71.13 billion, while total imports increased to $88.61 billion from $82.29 billion.
Services exports rose to $37.24 billion in April from $32.85 billion a year earlier, while services imports eased to $16.66 billion from $16.91 billion.
In March, the merchandise trade deficit narrowed to $20.67 billion after exports fell to $38.92 billion and imports declined to $59.59 billion.
India’s merchandise exports rose to $441.78 billion in FY26 from $437.70 billion in the previous year, while imports increased to $774.98 billion from $721.20 billion, taking the annual merchandise trade deficit to $333.2 billion. Total exports, including services at $418.31 billion, were at a record $860.1 billion in FY26.
Export target
India plans to more than double total exports to $2 trillion by FY31 – $1 trillion each in merchandise shipments and services. The government has asked officials to sharpen focus on micro, small and medium enterprises (MSMEs), farm products, certification and promotion of ‘Brand India.’
Reserve Bank of India Governor Sanjay Malhotra has said that recent bilateral and regional trade agreements with major trading partners are expected to boost trade and investment opportunities while widening and diversifying India’s trading partners and integrating the country into global value chains.
The US-Iran war, which has led to a blockade of the Strait of Hormuz, has curbed the flow of goods to ports in the Persian Gulf, prompting exporters to opt for alternative trade routes, often at higher costs. India’s exporters, particularly MSMEs, have faced rising freight costs and cargo delays across the Gulf region. MSMEs comprise 48% of the country’s exports.