Post signing of India - New Zealand free trade pact, the Commerce and Industry Minister Piyush Goyal held discussions with exporters and representatives of industry associations on ways to boost the country's shipments and enhance utilisation of free trade agreements (FTAs). During the meeting, Federation of Indian Export Organisations (FIEO) flagged issues such as extension of validity of authorisations up to August 31, 2026, in line with the extension already granted for export obligation fulfilment. FIEO pointed that the ongoing logistics disruptions have impacted exports as well as imports, thereby affecting the ability of exporters to utilise authorisations within the prescribed timelines.

Further, FIEO noted that several key sectors which are significantly impacted by US tariff actions, are not included in the trade relief measures announced by the Reserve Bank of India (RBI) covering 20 out of 98 Harmonised System (HS) chapters. Besides, the benefit under the RELIEF Scheme of ECGC is presently linked to realisation. However, given the prevailing uncertainties and delays in payments arising from the situation in the Middle East, realisation timelines are likely to be extended.

In March 2026, the country’s merchandise exports have dropped 7.44% to $38.92 billion, the steepest fall in five months, owed to trade uncertainty and geopolitical tensions, with shipments to West Asia contracting by more than 50%. However, the trade deficit narrowed to a nine-month low of $20.67 billion in March on account of lower imports. For the full 2025-26 fiscal year, exports grew 0.93% to an all-time high of $441.78 billion, while imports rose 7.45% to $775 billion. The trade deficit ballooned to $333.2 billion due to a jump in gold and silver imports during the last fiscal year.