Page 22 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Preparations & Miscellaneous Processed Items (3.25%) and Rice (0.7%) record positive growth
during February 2026 over the corresponding month of last year.

? Imports of Project Goods (-81.31%), Cotton Raw & Waste (-59.44%), Pulses (-38.49%), Newsprint
(-34.12%), Transport Equipment (-23.64%), Chemical Material & Products (-13.08%), Pulp and
Waste Paper (-9.24%) and Wood & Wood Products (-1.59%) record negative growth during
February 2026 over the corresponding month of last year.

? Services exports is estimated to grow by 10.23 percent during April-February 2025-26 over April-
February 2024-25.

? Top 5 export destinations, in terms of change in value, exhibiting growth in February 2026 vis a
vis February 2025 are China P Rp (32.37%), Hong Kong (32.14%), Vietnam Soc Rep (49.46%),
Togo (110.96%) and Sri Lanka Dsr (57.3%).

? Top 5 export destinations, in terms of change in value, exhibiting growth in April-February 2025-
26 vis a vis April-February 2024-25 are China P Rp (37.66%), U S A (3.84%), U Arab Emts (8.52%),
Spain (45.31%) and Hong Kong (30.91%).

? Top 5 import sources, in terms of change in value, exhibiting growth in February 2026 vis a vis
February 2025 are China P Rp (30.49%), Switzerland (719.3%), U K (202.59%), U S A (36.53%) and
Peru (377.65%).

? Top 5 import sources, in terms of change in value, exhibiting growth in April-February 2025-26
vis a vis April-February 2024-25 are China P Rp (15.21%), U S A (15.65%), U Arab Emts (10%),
Hong Kong (25.01%) and Peru (67%).

6. India remains as the world’s largest recipient of remittances, with inflows reaching USD
135.4 billion in FY25

India’s external sector remains strong, with deepening global integration driven by robust exports,
resilient services trade, and expanding trade networks. This reflects increased competitiveness,
diversification, and adaptability to global demand.

Current Account

India’s current account structure reflects a merchandise trade deficit offset by strong net inflows of
invisibles, led by rising surpluses in services and private transfers. In H1 FY26, the Current Account
Deficit (CAD) moderated to USD 15 billion (0.8 per cent of GDP) from USD 25.3 billion (1.3 per cent of
GDP) in H1 FY25. India is better positioned than its high-deficit peers, such as New Zealand, Brazil,
Australia the UK and Canada in Q2 FY26.

Economic Survey notes that India remained the world’s largest recipient of remittances, with inflows
reaching USD 135.4 billion in FY25, supporting stability in the external account. The share of remittances
from advanced economies increased, reflecting a growing contribution from skilled and professional
workers.

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