New Delhi, March 16 -- India's merchandise trade deficit will be under pressure in the fiscal year 2026, as domestic private consumption is expected to remain strong, maintaining imports up, the rating agency Crisil said in its recent report.

According to the rating agency, India's exports could also come under pressure due to the slowing economy and tariff related conditions in the United States.

However, as per the report, the service trade, which has proven to be more resilient and where India runs a surplus, will provide some cushion.

"Slowing global growth (3.0 per cent in calendar 2025 from 3.3 per cent in calendar 2024, as per S&P Global's November 2024 forecast) -- particularly of the US (2.0 per cent vs. 2.7 per cent), our lar...