India's merchandise trade deficit narrowed unexpectedly to $20.67 billion in March, the lowest level in nine months, as a surge in exports to the United States offset the adverse effects of the ongoing Iran war. Exports rose to $38.92 billion, up from $36.61 billion in February, while imports fell to $59.59 billion from $63.71 billion. Notably, exports to the US climbed by 17.4% to $8.02 billion, aided by a reduction in tariffs following a US Supreme Court ruling. However, the Iran conflict has disrupted shipping routes, leading to delays and increased logistics costs. Exports to the Middle East dropped by $3.5 billion due to these disruptions. For the fiscal year ending in March, India's total goods and services exports increased by 4.22% to $860.09 billion, while imports grew by 6.36% to $978.40 billion, resulting in an overall trade deficit of $119.3 billion, up from $94.66 billion the previous year. India is also working towards finalizing an interim trade deal with the US, aiming to negotiate favorable tariff terms.