India’s trade deficit widened more than estimated in March, after shrinking for four months as lukewarm demand from Europe and the US weighed on exports. 

The gap between exports and imports rose to $19.73 billion last month, India’s government said on Thursday. The reading is higher than a deficit of $18.2 billion seen by economists in a Bloomberg survey and compares with a $17.43 billion gap in February. 

Exports fell 13.9% from a year earlier to $38.38 billion in March, while imports stood at $58.11 billion, down 7.9%. Services exports rose to $27.75 billion last month, improving upon their February performance of $26.95 billion, according to the Trade Ministry’s estimates. 

Robust services exports are narrowing India’s current account deficit while providing some reprieve to the widening goods trade gap. This is easing pressure on the rupee that’s up more 1% against the dollar this year, making it one of the best-performing Asian currencies.

Despite recessionary tendencies and global headwinds exports did well, Commerce Secretary Sunil Barthwal told a news conference in New Delhi as outbound shipments were higher than the previous month. 

For the year ended March 31, goods exports grew 6% to $447.5 billion, helped by growth in shipments of petroleum products. Imports rose 16.5% on year to $714.2 billion last year on crude oil and coal shipments, which have a combined share of more than 36% in India’s inbound shipments. 

Crude prices have climbed down from last year’s high of $128 per barrel to $87 now, helping the world’s third-biggest consumer of oil keep its costs under check. Imports from Russia jumped 369% as India ramped up its purchases of discounted fuel from the nation facing sanctions due to the war in Ukraine.

India’s exports are coming under pressure amid concerns of a global slowdown. Exports to neighboring China and Bangladesh declined about 28% last year. 

The International Monetary Fund trimmed its global growth projection and warned that a flare-up in the banking sector turmoil could slash output further. The Reserve Bank of India last week paused its tightening cycle to assess the impact of its rate increases so far and support the economy.