By Ed Frankl
India's trade deficit shrank in March to its narrowest level since June, as the war in Iran choked off the country's shipments through the Strait of Hormuz.
The country's merchandise trade deficit--the gap between imports and exports--was $20.67 billion last month, compared with $27.1 billion previously reported for February and $21.69 billion in the same month of last year, data from India's commerce and industry ministry showed Wednesday.
Imports fell 6.5% in March to $59.59 billion, while exports rose 6.3% to $38.92 billion, the ministry said.
Petroleum-products imports dropped sharply by 36% as the upheaval caused by the conflict in the Middle East stymied energy flows.
About 30% of India's crude-oil imports flow through the Strait of Hormuz, the petroleum and natural-gas ministry said in March. The country imports around 60% of liquified-natural gas, of which 90% came through the Strait, it added. It also relies heavily on the Middle East for fertilizer imports.
India's position as a major energy importer and its strong trade, investment and remittance links with Gulf nations mean the country faces "multi-layered" risks, the Indian finance ministry said in late March.
The price of Brent crude, a global benchmark for oil, is now more than 30% higher than when the first strikes fell on Iran on Feb. 28.
Meanwhile, petroleum products were also a major driver of export growth in March, alongside engineering goods, ores, minerals, and some cereals, the ministry said.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
04-15-26 1119ET
