Iran war hits Indian economy:Exports to West Asia crash 58% in March due to conflict, says commerce secretary

Iran war has begun to impact the performance of Indian economy. Commerce Secretary, Rajesh Agrawal said on Wednesday, 15 April, 2026, that the exports to West Asia have fallen 57.95% in March 2026 due to the conflict. Similarly, the imports from the Middle East region have also declined 51.46% in March due to the conflict, added Agrawal. Country’s exports to all trading partners combined in March dropped 7.44% to $38.92 billion (₹3.61 lakh crore.) Imports too dipped by 6.51% to $59.59 billion (₹5.54 lakh crore) last month from $63.75 billion recorded in the year-ago month, reflecting disruptions in major trade routes like the Strait of Hormuz due to the conflict in West Asia. India’s full-year trade not affected: Albeit, India’s goods and services exports rose 4.22% year-on-year (YoY) to 860 billion (₹79.98 lakh crore) in 2025-26. Similarly, India’s imports in 2025-26 rose to $774.98 billion (₹72.07 lakh crore) compared to $721.2 billion (₹67.07 lakh crore) recorded a year ago. Merchandise exports rise to record high despite West Asia conflict India’s cumulative merchandise exports reached $441.78 billion during FY 2025–26 (April–March), as compared to $ 437.70 billion in FY 2024–25 (April–March), registering a positive growth of 0.93%. Merchandise exports of $38.92 billion in March 2026 marked the highest monthly export level during the financial year. India’s petroleum product exports rise despite Iran war-led supply-side concerns: Despite the Iran war-led supply-side concerns, India’s petroleum product exports rose 5.88% from $4.90 billion in March 2025 to $5.18 billion in March 2026. India-UK FTA in May? Agrawal also said that the India-UK FTA may come into force in May 2026. India-US trade deal: On the other hand, Additional Secretary Darpan Jain said that the Indian team would visit the US for trade talks from 20 April. ​