NEW DELHI, April 15 (Reuters) – India’s merchandise trade deficit narrowed to $20.98 billion in March, government data showed on Wednesday, amid risks the Iran war could impede exports to Gulf countries while raising the cost of energy and other imports.
Economists had expected the trade deficit to be $32.75 billion in March, according to a Reuters poll, compared with a deficit of $27.1 billion in the previous month.
India’s merchandise exports rose to $38.92 billion in March from $36.61 billion in February, while imports fell to $59.9 billion from $63.71 billion, data showed.
The U.S. on Wednesday said its military had completely halted trade going in and out of Iran by sea, even though President Donald Trump said talks with Tehran on ending the war could resume this week.
The war has prompted Iran to effectively shut the Strait of Hormuz, a crucial global waterway for crude and gas transport, disrupting energy supplies for net energy importer India, while crimping its trade with the Middle East.
India – unlike Japan, South Korea and Taiwan – depends on the Gulf shipping routes to move its products, and those routes have becomes prohibitively expensive as freight and insurance costs spike.
(Reporting by Shivangi Acharya; Editing by Mrigank Dhaniwala)
