The US-Israel war with Iran and the resultant blockade of the Strait of Hormuz, a key waterway, caused India’s merchandise exports to fall 7.4% year-on-year to $38.92 billion in March; shipments to the West Asian region dropped by 58%. With imports also declining by 6.5% to $59.59 billion in the month, India’s overall foreign trade in goods compressed, resulting in a relatively low trade deficit of $20.7 billion. Exports of goods contracted for the first time since October 2026, though shipments have been tepid in most recent months. “Our exports to West Asia in March went down by $3.5 billion. Normally, monthly exports to the region are around $6 billion but this March only $2.5 billion worth of exports went. In percentage terms, it has been a decline of 57.9%,” Commerce Secretary Rajesh Agrawal told reporters.