India Expands Trade Deals As March Data Shows Deficit, Gold Imports And Services Surplus

The Trade Ministry emphasized that these agreements are part of India’s broader push to expand market access and strengthen global partnerships. While exports remain resilient, the widening merchandise deficit highlights the importance of diversifying trade and leveraging services to balance overall performance.  

Upcoming Trade Agreements  

The Oman deal is expected to enhance energy and industrial cooperation, while the UK agreement will strengthen opportunities in services, technology, and manufacturing. The EU negotiations aim to establish one of India’s most comprehensive trade frameworks.  

March Trade Snapshot  

Exports were driven by engineering goods, pharmaceuticals, and textiles. Imports surged due to energy demand and raw materials, with gold imports alone valued at $2.98 billion. Services trade provided relief, recording a surplus of $12.94 billion. India’s exports to the U.S. stood at $87.31 billion in FY 2025/26, underscoring the importance of its largest trading partner.  

Strategic Outlook  

Analysts believe operationalising these trade deals will help India balance its trade deficit, expand export opportunities, and reinforce its role in global supply chains. The services surplus and strong U.S. trade ties provide additional support to India’s economic resilience.  

Trade Highlights  

• India to operationalise Oman deal in June  
• UK trade agreement expected in May  
• EU trade deal targeted within this financial year  
• March exports at $38.92 billion  
• March imports at $59.9 billion  
• Gold imports valued at $2.98 billion  
• Services trade surplus at $12.94 billion  
• Exports to U.S. at $87.31 billion in FY 25/26  

Sources: Reuters, Economic Times, Business Standard, Mint