In March 2026, India's exports saw a notable decline, particularly in labour-intensive sectors such as gems and jewellery, which fell nearly 30%, and readymade garments, which decreased by 19%. The overall exports to West Asia plummeted by 57.9% to $2.5 billion, significantly impacted by the ongoing conflict in the region that began on February 28. The disruptions in shipping activities have affected not only nearby markets but also distant destinations like Europe and the east coast of the United States. Additionally, exports of drugs and pharmaceuticals also slipped by 19% during the same month. The decline in exports can be attributed to various factors, including elevated gold prices affecting demand for plain gold jewellery, which saw a 7.42% decline in FY26. The Gems and Jewellery Export Promotion Council noted that the contraction was influenced by US tariff increases, global inventory corrections, and subdued discretionary spending in key markets.