India’s trade deficit widens in April as import costs rise

[NEW DELHI] India’s trade gap widened in April, as the nation’s import bill rose amid a spike in global oil prices due to the Middle East conflict.

The gap between exports and imports stood at US$28.4 billion in April, data released by the Ministry of Commerce and Industry showed on Friday (May 15).

That was higher than the US$26 billion deficit forecast by economists in a Bloomberg survey. The gap narrowed to US$20.6 billion in March.

Inbound shipments rose 10 per cent in April to US$71.9 billion from the year before, while outbound shipments stood at US$43.6 billion, up 13.8 per cent.

A wider deficit will put further pressure on the currency that is Asia’s worst performer so far in 2026.

India is the world’s third-largest importer of oil and heavily reliant on energy supplies through the Strait of Hormuz, a key waterway effectively blocked for more than two months because of the Iran war. 

SEE ALSO

India clears US$3.9 billion push to turn coal into gas to reduce imported fuel reliance

India’s wholesale inflation quickens to 3½-year high of 8.3% as energy costs soar

India hikes fuel prices for the first time in four years amid Iran war crude spike

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

To shield the economy, the government has announced emergency steps, including raising retail fuel prices and tightening gold imports to check foreign-exchange outflows and support the rupee. BLOOMBERG