India Trade Deficit Widens in April, Drags Rupee to Record Low

India’s merchandise trade deficit widened to $28.38 billion in April from $20.67 billion in March as the increase in imports in absolute terms exceeded the rise in exports, according to Commerce Ministry data released on Thursday.

The Indian rupee weakened past the 96-to-a-dollar mark to a record low of 96.11 soon after the release of the trade data. So far in 2026, the rupee has declined 6.5% against the dollar, reflecting persistent pressure from higher imports, global risk aversion and stronger demand for dollars.

Merchandise exports rose 14% year-on-year to $43.56 billion in April from $38.28 billion a year earlier. Imports increased 10% to $71.94 billion from $65.38 billion a year earlier.

Export growth was led by petroleum products, engineering goods and electronic goods. Petroleum product exports surged 34.66% year-on-year to $9.59 billion, while electronic goods shipments jumped 40.31% to $5.18 billion. Engineering goods exports, India’s largest merchandise export segment, rose 8.76% to $10.35 billion.

Country-wise data showed exports to Singapore surged 179%, while shipments to Sri Lanka rose 214% and exports to Tanzania climbed 157%. Exports to China increased 27%, while those to Bangladesh rose 64%.

However, exports to the United Arab Emirates declined 36%, reflecting continued disruption to West Asia trade flows amid geopolitical tensions and shipping disruptions in the region.

On the import side, the sharpest rise came from precious metals. Gold imports surged 81.69% year-on-year to $5.63 billion, while silver imports jumped 157% to $411 million. Electronic goods imports rose 38.23% to $12.78 billion, while imports of machinery and non-electrical equipment increased nearly 14%.

Oil imports fell 10% to $18.63 billion, reflecting supply disruptions linked to the conflict in West Asia.

India’s dependence on China remained pronounced, with imports from the country rising 20.85% to $11.97 billion in April, keeping China India’s largest import source. Imports from Russia rose 18.21%, while shipments from Oman more than tripled.

Services exports were estimated at $37.24 billion in April, lifting India’s total exports of goods and services to an estimated $80.80 billion, up 13.59% from a year earlier.

The latest trade data comes against a backdrop of continued uncertainty in global markets and geopolitical tensions in West Asia. The conflict has disrupted shipping routes and pushed up freight and logistics costs for exporters and importers, adding volatility to merchandise trade flows.