India’s merchandise exports declined by around 7% in March, reflecting growing disruption from the ongoing Iran conflict and associated instability in key global shipping routes, according to trade data and industry estimates.
The downturn was driven largely by weaker outbound shipments to West Asia, where trade flows have been severely affected by disruptions in maritime corridors, higher freight costs, and delayed sailings. Analysts say the impact is already visible across multiple export-heavy sectors including engineering goods, textiles, chemicals, and agricultural products.
Imports also eased during the month, but the sharper fall in exports widened concerns over near-term external demand pressure. The decline comes as geopolitical tensions linked to the Iran conflict continue to unsettle global supply chains and energy markets.
Industry observers warn that the situation may worsen in the coming months if shipping disruptions persist, particularly through key chokepoints that connect India to Gulf and European markets. Rising insurance premiums and longer transit times are also adding to exporter costs and affecting competitiveness.
Economists note that while India has diversified some trade routes, exposure to West Asia remains significant, making the economy vulnerable to sustained regional instability. Policymakers are expected to monitor the situation closely as exporters call for logistical support and cost relief measures.
Recent data highlights that the external trade outlook remains uncertain, with volatility in global demand and shipping conditions likely to shape performance in the near term.
