India's merchandise exports experienced a notable increase of 6.3% in March 2026, reaching $38.92 billion, up from $36.61 billion in February. The country's trade deficit also narrowed to $20.98 billion. For the financial year 2025-26, total exports, including both merchandise and services, achieved a record high of $860.09 billion, marking a 4.22% rise from $825.26 billion in FY 2024-25. Merchandise exports for the same fiscal year amounted to $441.78 billion, reflecting a modest growth of 0.93%. However, the ongoing conflict in Iran poses risks to India's trade with Gulf countries, potentially raising the cost of energy and other imports. The US military's recent actions to halt trade with Iran could further complicate India's reliance on Gulf shipping routes, which have become increasingly expensive due to rising freight and insurance costs.