India’s merchandise trade deficit widened ​to $28.38 billion in April, government data showed on Friday, ‌as the West Asia conflict continued to ​hinder shipments, while disrupting energy imports and ⁠making them costlier.

Concerns that the energy shock from the months-long Iran war could slow growth, raise ‌inflation, and hit India’s balance of payments have led to a raft of ‌interventions from policymakers as the rupee plummets ‌to ⁠record lows, making it Asia’s worst-performing currency ⁠this year.

Economists had expected the trade deficit to be $26.5 billion, according to a Reuters poll, compared with a ​deficit of $20.67 billion ‌in March.

Merchandise exports rose to $43.56 billion from $38.92 billion in March, while imports rose to $71.94 billion from $59.59 billion, data showed.

India, the world’s ‌third-largest oil importer and consumer, imports more ​than 80% of its crude oil needs and 60% of its cooking ⁠gas, with the Middle East accounting for a large chunk of the supply.

Global crude prices have ‌spiked to as much as $120 per barrel since the Iran war started at the end of February, keeping the Strait of Hormuz largely shut.

Prime Minister Narendra Modi has urged a spate of measures including fuel ‌conservation, work-from-home practices, and limits on travel and imports, to ​conserve foreign exchange reserves.

The government estimates that services exports stood at $37.24 billion ⁠in April and imports at $16.66 billion, data showed.

India’s April ⁠gold imports likely remained subdued — with shipments seen falling to a near 30-year ‌low after banks halted purchases — which may have helped contain the overall trade gap, though ​detailed data is awaited.

Published on May 15, 2026