Whalesbook
Commerce and Industry Minister Piyush Goyal will meet representatives from export promotion councils and industry associations on Monday, April 27. The discussion comes at an important time, as Indian exporters face major challenges. The ongoing West Asia crisis, fueled by geopolitical tensions between the US, Israel, and Iran, has made shipping companies reluctant to operate in key Middle Eastern markets, a vital destination for Indian goods.
Export Challenges Intensify
The impact is already clear in recent trade figures. Merchandise exports fell 7.44% in March to $38.92 billion, the steepest monthly drop in five months. Shipments to West Asia specifically plunged over 50% that month. Although the trade deficit narrowed to a nine-month low of $20.67 billion in March due to lower imports, the underlying weakness in exports is a concern.
Meeting Agenda and Context
The meeting comes shortly after India and New Zealand are set to sign their free trade pact. New Zealand's Minister for Trade and Investment, Todd McClay, is already in the country and participating in business discussions. Representatives from sectors including leather, pharmaceuticals, auto, sports goods, and engineering are expected to attend.
Full Fiscal Year Trade Snapshot
Despite the March downturn, merchandise exports for the full 2025-26 fiscal year grew a modest 0.93% to an all-time high of $441.78 billion. Imports, however, surged 7.45% to $775 billion, widening the trade deficit to $333.2 billion, primarily due to higher purchases of gold and silver. Overall exports of goods and services reached a record $860.09 billion in fiscal 2025-26.