Why in the News?
India’s merchandise exports rose nearly 14% in April 2026 to $43.6 billion despite disruptions caused by the West Asia crisis.
Key Highlights
- Merchandise exports: $43.6 billion (up ~14%)
- Merchandise imports: $71.9 billion (up 10%)
- Merchandise trade deficit: $28.4 billion
- Services Trade
- Services exports: $37.2 billion (up 13.4%)
- Services imports: $16.7 billion (down 1.5%)
Overall Trade Deficit: The combined goods and services deficit fell from $11.2 billion to $7.8 billion.
Reasons for Export Growth
- Diversification of export markets
- Higher global commodity prices
- Strong supply chain resilience
Strong Export Growth To
- Tanzania
- Sri Lanka
- Singapore
- Bangladesh
- Vietnam
Impact of the West Asia Crisis
- Exports to West Asia fell by ~28%.
- Imports from West Asia fell by ~31.6%.
- Reasons:
- War-related disruptions
- Shipping concerns
- Energy market instability
UAE and U.S. Trade
- Exports to United Arab Emirates declined sharply.
- Exports to the United States grew modestly.
Important Concepts
- Merchandise Trade: Trade in physical goods like petroleum, machinery, textiles, and electronics.
- Services Trade: Trade in IT, banking, consulting, tourism, etc.
- India usually runs:
- Trade deficit in merchandise
- Trade surplus in services
| [2020] With reference to the international trade of India at present, which of the following statements is/are correct? 1.India’s merchandise exports are less than its merchandise imports. 2.India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years. 3.India’s exports of services are more than its imports of services. 4.India suffers from an overall trade/current account deficit. Select the correct answer using the code given below: a) 1 and 2 only b) 2 and 4 only c) 3 only d) 1, 3 and 4 only |
