Labour-intensive sectors see steep fall in exports in March
Among imports, incoming electronics shipments will surpass $100 billion for the first time in 2025-26, while exports totaled $48 billion for the entire fiscal year.
Data released by the Ministry of Trade and Industry on Wednesday showed that most labour-intensive sectors recorded a sharp decline in exports in March. While precious stone and jewelery exports decreased by nearly 30 percent, ready-made clothing exports decreased by 19 percent. Exports of drugs and pharmaceuticals also fell by 19% in March. March was the first month of the war in West Asia, which began on February 28.
There was also a decrease in exports of food items such as rice, spices, fruits and vegetables, cashews, meat and dairy products in March.
“The decline in exports to West Asia was above industry expectations of 30-35%. The disruption in shipping activity affected not only markets close to India but also long-term destinations such as Europe and the east coast of the US,” said Ajay Sahai, director general of the Federation of Indian Export Organizations.
In March, India’s goods exports to West Asia decreased by 57.9% to 2.5 billion dollars, while its imports from the region decreased by 51.64% to 8.7 billion dollars.
Non-oil and precious stones and jewelery exports stood at $31.69 billion in March 2026 compared to $34.25 billion in March 2025. Exports of plain gold jewelery fell by 7.42% in FY26, largely due to the impact of higher gold prices, which put pressure on demand, especially in price-sensitive markets. Cut and polished diamond exports decreased by 8.52% annually.
“This contraction was primarily due to global inventory corrections, structural fluctuations in key markets, subdued discretionary spending and increased competition from alternative luxury segments, as well as the impact of U.S. tariff increases implemented last year,” the Gems and Jewelery Export Promotion Council said.
