Indian Economy Update: Exports Grow, Non-Life Insurance Sector Sees 9.2% Growth

Indian Economy Update: Exports Grow, Non-Life Insurance Sector Sees 9.2% Growth​

Key Economic Indicators Show India's Trade Surplus Decline Amid Global Headwinds​

India's merchandise exports recorded a growth of over 4 per cent during the 2025-26 fiscal year. However, the overall trade deficit widened by more than 26 per cent for the full year, according to data released by the Commerce Ministry. While the overall gap expanded, the trade deficit narrowed in March as both exports and imports experienced a synchronized dip during the final month of the fiscal year.

Commerce Secretary Rajesh Agrawal stated that merchandise exports for April-March 2025-26 rose 1 per cent to $441.78 billion from $437.7 billion. Imports also increased to $774.98 billion during the same period, up from $721.2 billion in 2024-25. Services exports are estimated at $418.31 billion in 2025-26, showing a growth of around 8 per cent.

On a monthly basis, India's total exports (merchandise and services combined) were estimated at $74.11 billion for March, marking a negative growth of (-)4.58 per cent compared to March 2025. Total imports (merchandise and services combined) for March 2026 were estimated at $76.55 billion, registering a negative growth of (-) 5.76 per cent from March 2025. Consequently, the trade deficit narrowed to $2.44 billion compared to $3.55 billion in March.

The decline in West Asia is also notable. Due to the conflict involving the US, Israel, and Iran, exports to West Asia fell 57.95 per cent in March, and total imports from the region declined by 51.64 per cent last month.

Financial Sector Data: Insurance and Banking Metrics​

Non-life insurance is showing strong growth, with the gross direct premium (GDP) underwritten by non-life insurers increasing 9.2 per cent in the financial year ended March 2026. The total GDP stood at ₹3,35,918 crore, up from ₹3,07,612 crore in the previous financial year.

The growth metrics for the sector were as follows:

In the banking sector, the credit-deposit ratio of all scheduled banks widened to approximately 255 basis points (bps) as of March-end 2026. This represents a significant widening from about 91 bps as of April 4, 2025. At March-end 2026, credit and deposit growth for these banks were 15.96 per cent and 13.41 per cent, respectively. These figures compare to 10.9 per cent and 9.99 per cent, respectively, as of April 4, 2025.

Progress on Free Trade Agreements (FTAs)​

The Indian delegation, led by Chief Negotiator Darpan Jain, is scheduled to visit Washington from April 20 to 22 to resume talks on the India-US trade deal. Negotiators aim to finalize the legal text of the Bilateral Trade Agreement (BTA) while addressing the impact of the new 10 per cent global import tariff introduced by the US in February.

The government has also outlined an ambitious 2026 roadmap for several major FTAs.


The Ministry expects the free trade agreement related to India-EU to be signed before the end of the current calendar year, aiming for operation within the current financial year.

Policy Updates in Energy and Commodities​

The Ministry of Petroleum and Natural Gas (MoPNG) announced an enhancement of the allocation for C3 (propane) and C4 (butanes/butenes) streams to 1,000 tonnes per day (TPD). This scheme, introduced on April 1, mandates that refining companies make certain minimum quantities of C3 and C4 streams available for critical sectors such as pharmaceuticals, packaging, and polymers.

The allocation is determined by the Centre for High Technology (CHT) and is based on specific quantity and refinery source. Sujata Sharma, Joint Secretary in MoPNG, noted that an inter-ministerial Joint Working Group (JWG) was established to ensure the availability of petrochemical feedstock supply for the domestic market.

Regarding domestic supply, the government has ensured 100 per cent supply to domestic LPG, domestic PNG, and CNG for transport, despite ongoing geopolitical situations. Total commercial LPG allocation has been increased to approximately 70 per cent of pre-crisis levels, which includes 10 per cent piped natural gas (PNG) reform-linked allocation.

Inflation and Market Conditions​

The Wholesale Price Index (WPI) climbed to a three-month peak of 3.9 per cent in March, driven by escalating costs for fuel and power. The WPI data reflects a tightening squeeze on energy inputs.

The key inflation drivers reported were:

• Fuel and power basket: Spiked to 1.05 per cent in March, up from a deflation of 3.78 per cent in February.
• Crude petroleum: Surged to 51.57 per cent during March, against a deflation of 1.29 per cent in the previous month.
• Manufactured products: Rose to 3.39 per cent in March from 2.92 per cent in February.

Experts suggest that rising global energy prices may cause WPI inflation to rise further.

In comparison, the merchandise trade deficit eased to $20.7 billion in March 2026, down from $21.7 billion in the year-ago month.

COALINDIA Stock Price Movement​

As of 1:13 PM, shares of Coal India Limited are slipping by 1.02% in live trading, currently at ₹431.35, shedding ₹4.45 from its previous close. The notable decline occurred amidst high liquidity, with the stock trading on a volume of 7.32 million shares.

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