India's April Trade Deficit Widens to $28.38 Billion on Higher Energy Imports

India's trade deficit widened sharply in April as surging international oil and gas prices increased the country's energy import bill amid ongoing Middle East conflict. 38 billion last month, according to data from the Ministry of Commerce and Industry published on Friday. 6 billion deficit recorded in March and came in above economists' expectations of about $26 billion.

Imports, however, soared as India and other major crude buyers were forced to source more expensive oil from producers not reliant on the Strait of Hormuz. The strait has remained closed to most tanker traffic for two and a half months since the start of the Iran war.

The disruption cut off more than 40 percent of India's crude oil flows that previously passed through the waterway. com reported that the widening trade deficit and rising energy import costs are pressuring the government's current account and finances. The oil supply crisis has begun seeping through India's economy, with the import bill climbing since the conflict began.

U.S. dollar. Analysts have raised inflation estimates and lowered forecasts for economic growth as the country feels the oil supply shock beyond direct delivery disruptions of oil, LNG and liquefied petroleum gas.

LPG serves as the primary cooking fuel in the world's most populous nation. The oil shock created by the war will weigh on India's economic growth in the current fiscal year to March 2027. 7 percent in the 2026/2027 fiscal year.

The article detailing these developments was published on May 15, 2026.