Among imports, inbound shipments of electronics crossed $100 billion for the first time in 2025-26, while exports totalled $48 billion in the full fiscal.
Data released by the commerce and industry ministry Wednesday showed that most labour-intensive sectors registered a steep decline in exports in March. While gems and jewellery exports slipped nearly 30%, readymade garments declined 19%. Drugs and pharma exports also slipped 19% in March. March was the first month of the war in West Asia that began February 28.
Food items such as rice, spices, fruit and vegetables, cashew and meat and dairy products too witnessed a decline in exports in March.
“The decline in exports to West Asia was steeper than industry expectations of 30-35%. The shipping activity disruption has not only impacted markets close to India but also long duration destinations such as Europe and the east coast of the US,” said Ajay Sahai, director general, Federation of Indian Export Organisations.
India’s goods exports to West Asia dipped 57.9% to $2.5 billion in March, while imports from the region fell 51.64% to $8.7 billion.
Non-petroleum and non-gems & jewellery exports in March 2026 were $31.69 billion compared to $34.25 billion in March 2025.Plain gold jewellery exports declined 7.42% in FY26 largely impacted by elevated gold prices, which weighed on demand, particularly in price-sensitive markets, while exports of cut and polished diamonds decreased 8.52% on-year.
“This contraction was primarily influenced by the impact of US tariff increases implemented in the previous year, along with global inventory corrections, structural headwinds in key markets, subdued discretionary spending, and increasing competition from alternative luxury segments,” the Gems and Jewellery Export Promotion Council said.