CRISIL Highlights Challenges for India's Merchandise Exports Amid Trade Issues

Ratings firm CRISIL has highlighted challenges for India's merchandise exports due to stalled US-India trade talks and potential US tariffs linked to Russian crude oil purchases. Tea and basmati rice exports may face pressure from a 25% US tariff on countries trading with Iran. Despite a widening merchandise trade deficit to $25 billion in December 2025, the current account deficit is expected to stay manageable, supported by strong services trade, remittances, and lower crude prices. The US remains India's top export market, driven mainly by smartphone shipments.