India in March 2026: the most important developments in economy
India's economy in March 2026 was shaped by the conflict involving Iran and the disruption of shipping through the Strait of Hormuz. On 11 March President Trump announced a new oil refinery in Texas, the first in the US in 50 years, saying it involves a $300 billion investment from India's Reliance Industries; Reliance had not confirmed the deal or its figures. On 6 March the US granted India a 30-day waiver to buy Russian oil, and India bought 30 million barrels, then 60 million barrels for April. The US later eased sanctions on Iranian oil, and Indian Oil bought its first Iranian LPG cargo since 2018. On 12 March the first India-flagged tankers crossed the Strait of Hormuz, and on 26 March Iran said it had granted Indian ships passage as a 'friendly nation'.
Financial markets fell. The rupee hit record lows beyond 92 per dollar on 4 March, beyond 93 on 20 March and past 95 on 30 March, and the central bank deployed about $12 billion to defend it. The Sensex recorded its steepest fall in nearly two years on 19 March, and Indian markets lost $240 billion in wealth at one point. Goldman Sachs cut its India growth forecast on 24 March. Shares rose for two days from 25 March on prospects of a ceasefire.
Fuel supply was under strain. India ordered refiners to raise LPG output, raised LPG prices, and on 25 March ordered households with piped gas to switch to it or risk losing LPG supply, while officials said stocks were adequate. Hotels and industries reported shortages. Airlines recorded over 1,500 cancellations in the first four days of the month, and Air India said on 22 March it was flying at 30% capacity to West Asia.
Other economic news included a Canada-India uranium supply deal valued between $1.9 billion and $2.6 billion, a US-India investor group's purchase of the Royal Challengers Bengaluru cricket team for about $1.78 billion, new US trade investigations covering India, and reports that India would hold off on signing a trade deal with the US.
by WorldBrief & Maksim Micheliov | AI-generated summary
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