India's merchandise trade deficit expanded to $28.38 billion in April 2023, as exports surged to $43.56 billion, reflecting a notable increase from $38.28 billion a year prior. Imports also rose to $71.94 billion, up from $65.38 billion in April 2022. However, the overall trade deficit, which includes services, narrowed to $7.81 billion from $11.16 billion a year ago. Total exports, encompassing both merchandise and services, climbed to $80.80 billion compared to $71.13 billion, while total imports increased to $88.61 billion from $82.29 billion. For the fiscal year 2026, the annual merchandise trade deficit stood at $333.2 billion, with exports totaling $441.78 billion and imports at $774.98 billion. The Indian government aims to boost total exports to $2 trillion by FY31, with a focus on enhancing the capabilities of micro, small, and medium enterprises (MSMEs). Recent geopolitical tensions, particularly the US-Iran conflict affecting trade routes, have posed challenges for exporters, especially MSMEs, which constitute 48% of the country's exports.